Many women and men alike don’t give much thought to superannuation until retirement is fast approaching.
But if there is one moment in time when you give your super some attention, we beg you, make it during your divorce.
The Suncorp Untying the Knot report showed that 86% of divorced participants did not consider superannuation as part of their settlement.
As a result, the expected age of retirement for divorcees jumped from their late 60’s up to 75.
Don’t fancy supporting these statistics? Read these simple tips for managing superannuation and divorce.
Superannuation and divorce
Thanks to the gender pay gap and interrupted employment due to pregnancy, women tend to have significantly less superannuation than their male partners.
Anyone with half a brain would agree that these factors shouldn’t mean that women are worse off in later life – an opinion that the law reflects.
Like your savings or assets, the law usually looks upon super earned while you were in a relationship as part of a joint enterprise.
How does superannuation and divorce work?
In divorce, superannuation is covered under the superannuation splitting law, which basically defines super as a different type of property.
While recommended, it is not mandatory for super to be included in your divorce settlement. Make sure your lawyer does so.
How is the superannuation division paid?
Once superannuation is redistributed after divorce, you don’t gain direct access to the money. Instead, all payments go back into the superannuation system, and are subject to standard superannuation rules and regulations.
In general, only money accrued up until the point of separation is considered as part of your superannuation agreement.
Is there a way to check how much superannuation my partner has accrued?
You can request the balance of your partner’s super fund through legal avenues (known as Form 6 requests) without your partner’s permission or awareness.
This can be useful if you suspect that your partner is lying about their super balance. It may also prove valuable if you are planning to separate from your partner and are trying to determine your financial entitlements in advance.
To make a balance enquiry, all you need to know is your partner’s super fund. You can then contact them and request the appropriate forms. Alternately, you can arrange these forms through your lawyer.
Looking for more information on superannuation and divorce?
Understanding superannuation and divorce is a task easier said than done. You can read more about the super valuation and division process on the ATO website or through the Family Law Courts page here.