May 05, 2016
Superannuation refers to funds that you put away during your working life for retirement. You can’t touch it until you hit retirement age. In a family breakdown, is it possible for your former partner to access your retirement monies? The short answer is yes. A property settlement considers all the assets of parties to the relationship, including their superannuation. However, the outcome can vary from person to person.
What does this mean for me?
Ultimately, the impact of a property settlement on your superannuation will depend on what you negotiate.
In some cases both parties have equal amounts of superannuation. As a result, both parties agree to leave their superannuation assets alone, each retaining their rights over the superannuation.
In other cases, there is a large gap between the superannuation of one party to the superannuation of another. The Court seeks to rectify this disparity because often one party’s lesser superannuation is a consequence of the time they have spent as homemaker or primary carer for the family instead of working. As a result, it is fair to ensure they are not disadvantaged by this contribution to the relationship.
So, if one person has $10 in their superannuation and the other has $100,000 how will this be spilt?
There are a number of options if you decide that you want a part of your former partner’s superannuation or if they want a part of your superannuation entitlement:
- The superannuation entitlements are not split. Each retains the right to their own superannuation, however one party may be compensated for giving up the right to a part of the other’s superannuation. So although the superannuation remains untouched, one party may get a larger portion of the non-superannuation asset pool, or
- The superannuation of one party is split, and part of their entitlement is transferred to the other, or
- The superannuation of both parties is split, and transferred around to reflect the agreement of the parties.
Family law is designed to have a certain amount of flexibility and property settlements should be negotiated to suit you and your former partner’s particular circumstances.
If you have concerns about your superannuation, and/or family law property settlement, please do not hesitate to contact us at 9620 688 or via email at jfrank@franklegal.com.au or click the button below.
This article is provided to the reader for general information. It is not legal advice. It was written by Emily Graham & Andrea Spencer and edited by James Frank.
More From The Blog
