Guide to superannuation-splitting Orders
A superannuation-splitting order, as defined by the Family Law Act 1975 (Cth) in Australia, is a legal document that allows for the division of superannuation (pension) benefits between parties following the end of their relationship, typically during a property settlement.
Under the Family Law Act 1975 (Cth), superannuation is recognized as type of property, and like other assets, it can be subject to division between separating or divorcing parties. A superannuation-splitting order provides a framework for the fair and equitable division of superannuation interests accumulated by one or both parties during their relationship.
Key features of a superannuation-splitting order include:
- Identification of Superannuation Interests: The order identifies the specific superannuation funds or schemes involved and specifies the interests to be split between the parties.
- Valuation of Superannuation: The order determines the value of the superannuation interests, which is usually assessed at the time of reaching agreement as to property settlement.
- Division amount: The order stipulates the dollar amount of the superannuation interest to be allocated to the receiving party. This dollar amount can be equal or based on various factors, such as financial circumstances, contributions, and future needs. For the purpose of Consent Orders it is the amount the parties agree will be “split” from one person’s superannuation fund to the other’s.
- Payment Options: The order outlines the available options for implementing the superannuation split. Our superannuation-splitting order allocates a dollar amount of the superannuation benefits to be transferred to the other party’s superannuation fund.
- Compliance and Implementation: The order provides instructions for the implementation and compliance with the superannuation split, including the necessary forms, documentation, and procedures to be followed by the superannuation fund administrators.
It’s important to note that a superannuation-splitting order does not convert the divided superannuation interest into cash immediately. It establishes a separate interest for the non-member party, allowing them to access their share of the superannuation benefits when they become eligible, typically upon retirement.
Superannuation-splitting orders aim to promote fairness and facilitate a just division of property between parties involved in family law matters. They provide a structured approach to addressing superannuation entitlements and ensuring that both parties have an equitable share of these assets when considering their overall financial settlement.