Superannuation Splitting

Navigating Superannuation Splitting: A Guide from Sydney's Top Family Lawyers

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.

Key Takeaways:

Superannuation is considered an asset under the Family Law Act, making it eligible for division between parties during a relationship breakdown.
This applies to both married and de facto relationships.
Superannuation is treated uniquely due to its nature as a long-term savings vehicle for retirement.
There are two primary routes to split superannuation: Superannuation Splitting Orders and Binding Financial Agreements.

Watch Daniel Rod’s Latest Video on Superannuation Splitting

Superannuation: A 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.

The Two Pathways of Superannuation Splitting

Superannuation Splitting Orders

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.

Key Points:

The amount to be split can be agreed upon between parties or determined by the court.
The split amount can be either a fixed dollar or a percentage.
The process differs if the fund is a Self Managed Super Fund (SMSF) or a Defined Benefits Scheme.

Evolve Legal - Superannuation Splitting Orders

Binding Financial Agreements (BFAs)

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.

Key Points:

BFAs can include specific provisions regarding the division of superannuation interests.
BFAs are legally binding if they meet the requirements of the Family Law Act 1975.

Procedural Fairness for Trustees

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.

Key Point:

It is essential to ensure the trustee is given due notice and time, in compliance with legal requirements.

Why Expert Guidance Matters

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.

How Ramsden Family Law Can Help You

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.