Is Superannuation included as ‘property’ in a Family Law property division?
After separation, it is generally necessary for property entitlements to be formally adjusted between the parties in accordance with each party’s entitlements under the Family Law Act 1975. Sometimes it may be appropriate to divide the matrimonial property pool on a 50/50 basis between the parties. Other times, unequal proportions (where one party gets more than the other) might be fair in the circumstances.
All the property of the parties is required to be included in the matrimonial property pool available for division between the parties. This includes each of the party’s superannuation entitlements, which may form a large part of the property pool.
What is a ‘super split’ and how does it work?
As superannuation is held in a trust (prior to the person entitled to the benefits reaching preservation age), superannuation is divided by a different process that other ‘ordinary property. We call the division of superannuation from one party to another in Family Law property division a ‘super split’.
A super split can only be made where there are court orders or a binding Super Splitting Agreement directing the trustee of the super fund (in accordance with the strict wording required under the legislation) to transfer the specified amount of the super split from the superannuation interest into a new super account.