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Superannuation and Family Law property matters
Under the Family Law Act 1975, superannuation splitting refers to the division of superannuation interests (retirement savings) between parties in a divorce or separation property settlement. Superannuation is considered a type of property and can be divided along with other assets and liabilities as part of a property settlement.
Key Concepts in Super Splitting:
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Splitting Orders: The court, can make orders to split superannuation interests between parties. This does not involve a direct transfer of funds but rather a splitting of the superannuation interest so that each party holds a separate interest in the fund.
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Flagging Orders: These orders are used to prevent the payment of a superannuation interest until the court decides how it should be split.
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Agreement by Parties: Parties can agree on how to split their superannuation and formalize this agreement through a binding financial agreement or consent orders.
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Valuation of Superannuation: The superannuation interests must be valued according to specific regulations, which can be complex depending on the type of fund (e.g., defined benefit funds).
The base amount is a term used in superannuation splitting to specify the amount to be allocated to the non-member spouse from the member spouse’s superannuation interest. This can be a fixed dollar amount or a percentage of the superannuation interest. It is determined either through mutual agreement between the parties or by the court in a property settlement order.
Steps in Super Splitting:
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It is necessary for each party must obtain information about the superannuation interests, including their value, which most probably will require contacting the superannuation fund.
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Parties then must decide on how to divide the superannuation, either through negotiation, mediation, or court proceedings.
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If an agreement is reached, the agreement is then set out in a superannuation agreement or consent orders. If no agreement is reached, the matter may need proceed to court.
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Once the orders are made, they are served to the superannuation fund, which will implement the split according to the order.
I am providing this advice to my clients regularly, to ensure that their interests are protected and that the division is carried out in accordance with the law. If you or anyone you know needs advice regarding the division of property as a result of a divorce or separation, please do not hesitate in contacting me.
Wishing you a wonderful day,
Jeffrey Choy
JCL Legal
0419 233 670
[email protected]
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Legal Disclaimer: This guide is for informational purposes only and does not constitute legal advice.