When couples in a marriage or de facto relationship separate, one of the things they will need to do is consider how to divide up their property. One category of property that can cause particular issues to arise is the entitlement of one of the parties to the relationship to superannuation.
Superannuation is a complicated subject in itself. There are quite a few different types of interests in super funds – industry-based employee membership funds, self-managed funds and older style public service funds. The interests in those funds can now be the subject of a property settlement agreement or property settlement orders just like other types of property.
Any adviser who is asked to express a view about how a super fund interest might be divided will want to know:
- When the particular member joined the fund;
- The present day value of the member’s interest;
- The value of the member’s upon maturity;
- Whether the present interest can be withdrawn in whole or in part and if so the tax payable on present withdrawal.
One of the ways in which superannuation can be dealt with under the Family Law Act is by making what is known as a splitting order. That is an order that splits the current interest and gives a proportion to the other partner.
The various options available to deal with superannuation will depend on the rules of the fund and the benefits and disadvantages that go along with taking one option as opposed to another are not always obvious. If you wish to discuss what right and responsibilities that go with splitting super or taking one of the other options, we strongly advise you to discuss it with one of our Family Law Accredited Specialists.
Written by
Stephen Rugendyke
Special Counsel
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