For sometime now, it has been possible for separating couples (both married and de facto couples) to "split" their superannuation entitlements as part of a property settlement package. This is known as superannuation splitting.
How does superannuation splitting work?
For example, if one of you has superannuation of $100,000 and the other has superannuation of $50,000, it is possible to equalise your superannuation entitlements so that you both end up with $75,000 in your respective superannuation funds (or this could be any other dollar amount as agreed by you and your former partner).
Superannuation splitting is possible for various types of funds, including accumulation funds, defined benefit funds and self managed superannuation funds.
The rules in relation to superannuation splitting are highly technical, and great care is needed in applying the law and drafting the necessary documentation. This is especially so in matters where superannuation forms a substantial portion of the overall asset pool.
Superannuation splitting - how we can assist you
Our team of experienced family and relationship lawyers can:
- advise you as to the advantages and disadvantages of splitting your superannuation, or receiving a superannuation split, as part of an overall property settlement;
- liaise with Trustees of various funds on the necessary steps to formalise a superannuation split; and
- draft court orders and agreements relating to a superannuation split.
> Read our eBulletin: Superannuation splitting - superannuation laws don’t discriminate