Superannuation Splitting – Divorce and De Facto Breakdown
Australian law has specific regulations in place to deal with superannuation in the event of a couple dividing their property during divorce or after the breakdown of a de facto relationship.
What the law says
Under this law, your superannuation is regarded as a different type of property. It allows the parties of the broken down marriage or de facto relationship to value their own superannuation fund and divide the payments, when and if it is deemed necessary.
It should be noted that splitting a superannuation does not convert it into a cash financial asset, and all standard laws regarding superannuation funds still apply.
How to split a superannuation
To split your superannuation, you first have to obtain the valuation information of the fund. This is done by sending the relevant documentation detailed in the Superannuation Information Kit to the trustee of your superannuation.
Please note that your superannuation fund may charge a fee for the retrieval of the necessary information.
Valuation of a superannuation
The law regarding superannuation splitting has various methods for calculating the value of a given fund. However, there are exceptions:
- A self-managed superannuation fund is under normal circumstances valued by consulting a financial expert, like an accountant.
- If the Attorney-General has approved the valuation of a fund that was calculated using a different method.
Methods of superannuation splitting
In normal circumstances, you enter into a formal agreement or obtain a court order for splitting superannuation.
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