When it comes to family law property matters, one important aspect that arises during settlement negotiations is the division of superannuation. Just as assets including houses, savings, vehicles and shares, as well as liabilities including mortgages and personal loans, superannuation is also considered in the asset pool and is therefore considered when determining how the net asset pool should be divided.
A superannuation split refers to the process of transferring a portion of one party’s superannuation entitlements to the nominated superannuation account of the other party. This transfer is tax-free, and thereafter each party maintains separate superannuation entitlements.
The process of determining how much superannuation each party is entitled to involves considering several factors (some of which may not apply to your circumstances):
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1. the length of the relationship or marriage;
2. the ages of the parties;
3. entitlements that the parties had at the beginning of the relationship;
4. periods of unemployment;
5. additional contributions made by either party;
6. the type of superannuation interest held by each party;
7. withdrawals by either party throughout the relationship and since separation; and
8. other non-financial and financial contributions of the parties.
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It is important to be aware that there are several different types of superannuation accounts in Australia. The balance of superannuation on the statement provided to you by your superannuation fund is not always the true figure used in family law negotiations.
A family lawyer will be able to guide you through this complex area and will provide you with advice about whether your superannuation entitlements ought to be valued before negotiating a split.
Further, the Court will take into account the parties’ entitlements to superannuation as at the time of settlement, not necessarily as at the time of separation. It is therefore important to obtain legal advice early on in your separation so that you can best protect your interests.
By seeking professional legal assistance, you can ensure a fair and equitable division of your assets, including superannuation, and pave the way towards a more secure financial future.
