Going through a separation or divorce is a challenging and emotionally taxing experience, often requiring careful consideration of various financial aspects. One crucial financial component that comes into play during this period is superannuation. In Australia, superannuation is a significant asset for most individuals, and understanding how it’s treated when a relationship breaks down is essential. In this article, we’ll explore what happens to your superannuation if you separate and how a family law firm can guide you through this process.
You should obtain advice from the best family lawyer in Sydney to provide you with advice on your superannuation if you separate.
Superannuation and Family Law
When a relationship breaks down, superannuation is considered a marital asset, and its treatment is subject to family law regulations. Part VIIIB of the Family Law Act 1975 (Cth) governs how superannuation is handled in separation or divorce cases. As superannuation is considered as much a part of marital assets as other assets, superannuation is almost always included when determining what is a fair and equitable division of assets between both parties.
Options for Dealing with Superannuation
Superannuation can be dealt with in a number of ways, namely;
- Consent Orders: In some cases, couples can agree on how to divide their superannuation and other assets through consent orders. These are legal agreements that are approved by the court and enforceable.
- Binding Financial Agreements: Another option is to create a binding financial agreement which can be entered into prior to, during, or after a relationship. These agreements can specify how superannuation is to be divided in case of separation. However, the law regarding both binding financial agreements, and superannuation is complex and there are strict legal criteria that must be met for agreements to be enforceable.
- Court Orders: If you cannot reach an agreement with your ex-partner, you may need to seek court intervention. The court will assess various factors, including the value of superannuation, the financial contributions made by each party, and their future needs, to make a fair division.
Splitting Superannuation
One common way to divide superannuation is through a process called ‘splitting.’ Superannuation splitting allows for a portion of one partner’s superannuation to be transferred into the other partner’s superannuation account. This division can be agreed upon by both parties or ordered by the court.
It’s important to note that not all superannuation funds allow splitting, and there may be limitations on how much can be split. It is vitally important to obtain advice from a family lawyer who can assist in navigating these complexities and ensuring a fair split.
Conclusion
When it comes to separation or divorce, understanding how superannuation is treated is crucial for securing your financial future. It’s advisable to seek professional legal advice from a top family lawyer experienced in family law and superannuation matters.
If you require guidance to deal with you or your ex-partner’s superannuation interest, contact us by email at info@barkevans.com.au or by telephone at (02) 8379 1892 to book an initial 15 minute consultation.