THE TREATMENT OF SUPERANNUATION IN FAMILY COURT PROPERTY SETTLEMENTS
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From 28 December 2002 Superannuation is treated as if it was property in relation to any property settlement proceedings under the Family Law Act. |
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The effect of this is that Superannuation is now treated as an asset and identified and valued in Step 1 of the proceedings in a property settlement claim in the Family Court (refer to Information Sheet No 25 "Property Settlement - How a Court determines a Property Settlement"). |
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In every matter involving Superannuation it is therefore necessary to carefully and properly identify all Superannuation interests that both the Husband and Wife have in any Superannuation Fund and then to ascertain the value of that interest. |
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It is therefore important to remember that Superannuation is not treated separately but is part of the overall property settlement and we will provide you with specific advice as to your property settlement entitlements and as to how Superannuation fits into that advice. |
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We will provide you with a checklist of relevant information and documents that we require you to gather for us so we can then start the process of collating relevant information from the Trustees of any Superannuation Funds. |
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In general terms, if you or your spouse has a Superannuation interest which is an accumulation interest or an allocated pension then mechanisms exist to enable that interest to be split and for you or your spouse to acquire an interest in that fund or to roll out an interest into your own complying Superannuation Fund. |
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In relation to defined benefit interests and partially vested accumulation interests then mechanisms exist to enable you or your spouse to receive an entitlement from such funds whenever a splittable interest becomes payable (usually at some time in the future). |
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We can also advise you of relevant tax implications and considerations when looking at whether an interest split or payment split of a Superannuation Fund is in your best interest. |
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We also recommend that you receive specific financial advice from a Financial Advisor so as to look at the advantages or disadvantages of receiving/retaining Super as part of your property settlement. We are able to work closely with your Financial Advisor or alternatively, if you do not have a Financial Advisor, we can recommend one to you to assist in this planning process. |
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It is our strong recommendation to you that you engage legal representation if you wish to split Superannuation as part of your property settlement. There are onerous obligations pursuant to relevant Regulations that must be complied with effectively to carry out the interest or payment split. It is not a straightforward or generic procedure and you need specific detailed advice about your individual Superannuation interests and those of your spouse's so as to work out the best solution in your overall property settlement. |
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Mr Hartley
Thank you for your patience and perseverance and for the excellent, prompt and efficient service you afforded me in my time of need.
It’s nice to know so many thoughtful people. Thanks for all you’ve done.
Yours sincerely
Cathy
