Property settlement and my superannuation

When married couples and de facto couples separate, it is important that the parties turn their mind to property settlement and parenting matters (if relevant).

In a property division, the parties are required to identify and assign value to the assets, liabilities and financial resources of the relationship, whether it is owned solely by one of the parties, or jointly.

Many people may not realise that superannuation is considered property in family law matters and it can be divided in a property division and form part of your share of the property settlement. This also applies to Self Managed Super Funds (SMSF) and Super Income Streams/payments.

The party’s respective superannuation interests can be adjusted, and this process is commonly referred to as ‘super split’.  

In order to split your superannuation, you are required to implement one of the following options:

1. enter into a formal written agreement with tailored advice from a lawyer; or
2. enter into Consent Orders with your former partner; or
3. seek a Court Order to determine the super split.

Prior to obtaining a super split, the parties are required to provide procedural fairness to their superannuation fund under the Family Law Act 1975 (Cth).  If the parties require Court Orders, they must provide a draft copy of the Orders for their superannuation fund to review prior to any final orders being made.

Superannuation and property settlements can be complex and have unintended tax implications. It is important that professional advice be sought when considering super splits.

If you have any queries in relation to your separation and property settlement including super split, please contact the team at Scanlan Carroll to see if we are able to assist with your matter.