There are often misconceptions about what happens to superannuation and how it is treated in the event of separation.
After separation, when parties are either coming to an agreement about how to divide their property, or asking a Court to make Orders dividing their property, the superannuation interest of each of the parties is treated as an asset and each interest will be considered as part of the overall property pool of the parties. As a part of this process, each party’s superannuation interest will be valued in accordance with the relevant laws. The valuation will vary subject to the type of superannuation interest.
What can happen to my superannuation?
It can be:-
- retained by a party as part of their overall property entitlements; or
- split between the parties. A superannuation split is where a part or all of a party’s superannuation interest is transferred to the other party’s nominated Superannuation Fund. It cannot be taken as cash.
How can my superannuation be split?
- By being incorporated into a written agreement, such as a Binding Financial Agreement entered into between the parties; or
- By entering into Orders by consent between the parties; or
- By Order of a Court following a hearing.
Superannuation splitting cannot be effected without a Binding Financial Agreement or Court Order, whether that Court Order is made by consent of the parties, or by Order of the Court.