How are superannuation interests split?
Superannuation is handled through “splittable payments” to ensure a fair division of assets. This process allows a non-member spouse to receive a portion of the member spouse’s superannuation interest as part of a property settlement.
Lump sum entitlements
Under section 80, if the first splittable payment is a lump sum that is equal to or greater than the adjusted base amount, the non-member spouse is entitled to be paid that adjusted base amount. This provides a clear mechanism for the non-member spouse to secure a specific value from the fund.
Requesting remaining benefits
Under section 82, a non-member spouse can request a lump sum consisting of the whole or a proportion of the remaining adjusted base amount. This is an optional payment and depends on the governing rules of the superannuation plan and the choices made by the member spouse.
The valuation problem
Calculating the actual value of a superannuation split is complex because it relies on discount valuation factors. These factors fluctuate based on the deferral period and whether the lump sum is indexed to CPI or general wages, meaning the final amount received can vary significantly.
Questions to consider
- How does the “adjusted base amount” apply to the superannuation interests in my specific case?
- Would receiving a lump sum under section 80 or 82 be more beneficial than a pension stream?
- How will the chosen indexing method and deferral period impact the final value of my superannuation split?
This information is general in nature and does not constitute legal
advice. For advice specific to your situation, contact JB Solicitors.