When a relationship breaks down, navigating the complex waters of asset division can be a daunting task. A significant, and often misunderstood, component of this process is the treatment of superannuation. In today’s post, Daniel Rod, Special Counsel at Ramsden Family Law, lends his expertise to explain how superannuation is handled under the Family Law Act and the process of splitting this unique asset.
Superannuation holds a special status in family law. It is viewed as a different species of asset because it is designed as a long-term savings tool intended for retirement. This distinct nature subjects it to specific rules and regulations, such as preservation age and early access rules, which influence how it is divided in a family law context.
If superannuation is divided by way of Consent Orders or Court Orders, this is known as a ‘superannuation splitting order’. This legal mandate allows a portion of the superannuation to be divided between the parties involved.
Another approach to splitting superannuation is through a superannuation agreement under the Family Law Act 1975. Such an agreement is part of a Binding Financial Agreement (BFA), a written document between spouses or de facto partners outlining how their property and financial affairs will be handled after a relationship breakdown.
When undertaking superannuation splitting, the law mandates procedural fairness. Specifically, the trustee of the superannuation fund must be given a notice period of 28 days to consider the implications of the intended split.
Superannuation splitting is a complex area of family law, and errors or misunderstandings can have lasting repercussions on your financial future. Daniel Rod and the team at Ramsden Family Law are dedicated to providing clear, effective, and compassionate advice to navigate this process smoothly.
As relationships evolve, understanding how assets like superannuation will be treated can help avoid undue stress during an already challenging time. With the expertise of Sydney’s top family law practitioners like Daniel Rod, you’re not navigating these complex waters alone.
If you’re facing a relationship breakdown and have concerns about your superannuation, reach out to Ramsden Family Law. Daniel Rod and our team of experienced professionals are here to guide you through every step of the process.