Breakups can be tough, right? Especially when it comes to sorting out money stuff like superannuation. But don’t worry, we’ve got your back! In this guide, we’ll walk through what happens to your super in a breakup, how to split it, and where you can turn for friendly advice along the way. So grab a cuppa and let’s dive in!
Divorce or separation can be complex, especially when it involves financial matters like superannuation. Understanding how to protect your superannuation in divorce and navigating the specific rules in Australia is crucial.
Treatment of Super in Divorce or Separation
Superannuation is considered an asset in divorce or separation and can be divided between partners by court order or agreement. This applies to married and de facto couples, regardless of sexual orientation. Even if super is split, it remains preserved until a relevant condition of release is met.
Process of Splitting Super
To split super, first calculate the total value, including your former partner’s account. You can request this information from their super fund or through a Superannuation Information Kit from the Family Court. New legislation in 2021 aims to make superannuation more visible during legal proceedings. If agreement can’t be reached, seeking legal advice and a court order may be necessary. Super remains preserved after a split until conditions of release are met.
Options Regarding Super Division
Partners can choose to defer splitting super or leave it untouched. If agreement is reached, it can be formalized in consent orders or binding financial agreements. However, the court may not always award a 50-50 split of super, considering various factors such as non-financial contributions, financial positions post-divorce, and dependents.
Claiming Super After Divorce
Partners can defer splitting super until retirement through a flagging agreement, which prevents payments until lifted by a court order or agreement. This approach may be suitable for Defined Benefit Division members.
Role of Financial Advisers
Navigating super and divorce is complex. Seeking advice from a financial adviser, like Forrest Private Wealth’s financial advice team, can provide guidance on steering super through life’s challenges. They can during divorce proceedings, ensuring you understand what any proposed arrangement means to you and your financial future.
Conclusion
Breaking up is never easy, but understanding what happens to your super can make things a bit smoother. And remember, you’ve got people like us and the team at Forrest Private Wealth in your corner, ready to help you through it all!
Forrest Private Wealth
Forrest Private Wealth is a Perth based financial planning, retirement planning, and wealth management firm, with a focus on navigating super and divorce. Book a free 15-minute virtual coffee with our Perth team of financial planners to discuss your circumstances. We’ll guide you through the process of managing your super during divorce proceedings, ensuring you have the retirement you want through personalized financial guidance. Let’s make your financial life better together.