What happens to superannuation in a property settlement?
Superannuation is defined as “property” under the Family Law Act so it forms part of the property pool with both parties superannuation entitlements being taken into account. Superannuation can be split eg if Mary has $100,000 and John has $200,000 and they decide to split their superannuation equally (or in whatever proportion) then the formula would be $100,000 + $200,000 = $300,00 (the superannuation pool) – Mary’s $100,000 she already has plus $50,000 of John’s superannuation split to Mary’s superannuation fund to equal out their entitlements. By the way it isn’t compulsory to split superannuation, the parties can elect to retain each of their entitlements if they agree to do so. If the decision is being made by a court then it may or may not order a superannuation split.
Superannuation splits can only be done by way of a consent order or financial agreement. It can be a complicated area of law so it’s certainly best to get both financial and legal advice at an early stage. Contact us at Family Lawyers & Mediation Services for an appointment to discuss your needs.
This is general information only and is not legal advice. You should obtain specific legal advice regarding your specific circumstances. © Family Lawyers & Mediation Services. All rights reserved. Liability limited by a scheme approved under Professional Standards Legislation.