Can the Family Court make Orders splitting Superannuation and other Pension Rights?

Yes. In December 2002, laws were introduced to enable the Family Court to make Orders that provide for superannuation splits.

The superannuation entitlements of a husband and wife are now assets about which the Family Court can make Orders that are binding on the trustees of superannuation funds. Whilst the laws apply to all married couples, they do not apply to parties in a de facto relationship.

How do Super Splitting Laws work?

By way of example, assume at marriage breakdown the parties' assets were made up as follows:

Assume the Court ordered the wife was to receive 60% of the net assets (ie $900,000) and the husband 40% (ie $600,000). The entitlement of the wife, assuming there were no tax consequences to be taken into account, could be met in a number of possible ways, depending on how great her need for immediate capital was:

Scenario 1

Scenario 2 if husband kept all superannuation

House	500,000
Part of Investments	400,000
Wife's Total	$ 900,000

How is Superannuation valued?

The Government has made laws enabling the value of the interest in superannuation funds to be calculated. The new laws apply to accumulation funds, defined benefit funds and pensions. Depending on the nature of the fund in issue, the calculation can be complicated and require advice to be obtained from an expert accountant or actuary.

At Barkus Doolan Kelly, our accredited family law specialists can retain qualified experts to provide advice on these issues and ensure that your assets are properly valued. There may also be important taxation consequences to be taken into account in “splitting” a superannuation entitlement.

Back