Superannuation 2016

Divorce and SMSFs

Source: Taxation In Australia Journal Article

Published Date: 1 Mar 2016


When parties to a marriage divorce, there may be a need to split superannuation between them, where they are members of a self-managed superannuation fund (SMSF). The splitting process is governed by the Family Law Act 1975 (Cth). It is in two stages: first, an order or agreement, the effect of which is to bind the trustee to split payments as and when those payments are due to be paid to the member; and second, service of the payment splitting order on the trustee, giving rise to the operating standards under Pt 7A of theSuperannuation Industry (Supervision) Regulations 1994 (Cth).

This article examines a number of common problems that arise in implementing the splitting process, and discusses solutions to those problems, including the tax consequences of superannuation splitting, and failure to take account of those consequences. Cases which illustrate SMSF difficulties are discussed.

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Superannuation 2016

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