Often after separation when parties are determining their property pool and deciding how the pool may be distributed between the parties, they do not realise that their superannuation interests are classed as 'property', and form a part of the parties' property pool which can be available for distribution.
Generally, a superannuation interest is unable to be split if it is less than $5,000.00 in value. It is also important to be aware that there are some payments made to a member spouse which are not splittable. These can include payments made on compassionate grounds or payments made because the member spouse is in severe financial hardship.
'Splitting' superannuation essentially means 'rolling over' a portion of one members superannuation amount to the non-members own superannuation fund or creating a new interest in the non-members name with the same fund. It is not a 'pay-out' of super and the non-member is subject to the same conditions for release as the member.
Superannuation can be split by way of a superannuation agreement, a binding financial agreement or consent orders which are filed with the Court.
The superannuation can be split to the non-member for a set percentage of the member's superannuation interest at a certain date, or a base (i.e. fixed) amount from the members superannuation interest can be stipulated.
The ability for parties to split superannuation has provided an alternative option to allow parties to be more flexible in their property settlements, and hopefully negotiate a property settlement which results in a just and equitable outcome for all involved.
To discuss your matter with one of our friendly Gold Coast Family Lawyers, please contact our office today on 07 5563 8970 or feel free to send us an email at email@example.com.