The Family Law Act 1975 contains provisions for superannuation agreements Family Law Act. Superannuation is a government-supported retirement savings system in Australia. It is a way for people to save a portion of their income over time, with the goal of providing financial security after retirement. Employers are required to make regular contributions to their employees’ superannuation accounts.
Superannuation is considered a form of property that should be included in property settlement procedures in the event of divorce or separation. The exact process for dividing superannuation in divorce will depend on the circumstances of the superannuation agreement. Read on to know more about superannuation agreements Family Law Act.
What Are Superannuation Interests?
It’s important to discuss superannuation interests when talking about superannuation agreements Family Law Act. Superannuation interests in Australia refer to the accumulation of funds in a person’s superannuation account. These interests represent the individual’s retirement savings, which consist of contributions made by the person, their employer, and in some cases, the government.
The value of a person’s superannuation interests is determined as at a specific date and may include contributions, investment returns, and any applicable fees or charges. The division of superannuation interests in divorce can have tax implications. Therefore, it’s important to seek the advice of a family lawyer before making any decisions about superannuation agreements Family Law Act.
Section 90XH: Superannuation Agreements for Married Couples
Let’s discuss Section 90XH superannuation agreements Family Law Act. According to Section 90XH, a financial agreement under Part VIIIA of the Family Law Act may include superannuation agreements.
The superannuation agreements should deal with superannuation interests of either or both of the married couples to the agreement as if those interests were property.
It makes no difference whether or not the superannuation interests exist at the time the agreement is made. The section of the financial agreement dealing with superannuation interests is referred to as a superannuation agreement. This referral is for the purpose of Part VIIIB, Division 2, Subdivision A of the Family Law Act.
A superannuation agreement is only valid if it is in accordance with this Part. It cannot be enforced under Part VIIIA of the Family Law Act. A superannuation agreement that is included in a Section 90B financial agreement has no effect unless and until the parties marry. A superannuation interest of a spouse party to a financial agreement is treated as acquired for the purposes of this Division.
This is true if that party first becomes a member of the eligible superannuation plan in respect of that interest. When does a superannuation interest of a spouse party to a Part VIIIA financial agreement be treated as acquired? This is when that party first becomes a member of an eligible superannuation plan. This plan is in respect of the superannuation interest when applying for sections:
- 90B (Financial agreements before marriage)
- 90C (Financial agreements during marriage)
- 90D (Financial agreements after divorce order is made)
Section 90XHA: Superannuation Agreements for De Facto Relationships
Let’s also discuss how Section 90XHA defines superannuation agreements Family Law Act for de facto couples. According to Section 90XHA, a Part VIIIAB financial agreement may include superannuation agreements. The superannuation agreements should deal with superannuation interests of either or both of the married couples to the agreement as if those interests were property.
It makes no difference whether or not the superannuation interests exist at the time the agreement is made. The section of the financial agreement dealing with superannuation interests is referred to as a superannuation agreement. This for the purpose of Part VIIIAB, Division 2, Subdivision A of the Family Law Act. A superannuation agreement is only valid if it is in accordance with this Part.
It cannot be enforced under Part VIIIAB of the Family Law Act. A superannuation agreement included in a Part VIIIAB financial agreement under section 90UB has no effect unless the parties enter in a de facto relationship.
When does a superannuation interest of a spouse party to a Part VIIIAB financial agreement be treated as acquired? This is when that party first becomes a member of an eligible superannuation plan. This plan is in respect of the superannuation interest when applying for sections:
- 90UB (Financial agreements before de facto relationship)
- 90UC (Financial agreements during de facto relationship)
- 90UD (Financial agreements after breakdown of a de facto relationship)
- 90UE (Agreements made in non-referring States that become part VIIIAB financial agreements)
Superannuation Agreements Family Law Act: What Are Binding Financial Agreements?
Binding financial agreements (BFAs) are legally binding contracts that are used before starting marriage or de facto relationships. BFAs specify how property and financial assets will be divided in the event of separation or divorce. This prevents any further property settlement disputes between couples. The agreements inside a BFA are enforceable under Australian family law.
BFAs are always important especially for couples who have major assets at hand such as cars, houses, or expensive jewellery. Let’s use an example. Giovanni and Jane are about to get married. Giovanni owns a successful business along with several investment properties. He also has a large superannuation fund that has accumulated for over 7 years.
On the other hand, Jane is a homemaker with no significant assets. John wants his business and properties protected. On the other hand, Jane wants to make sure that she will receive a fair share of their assets. Both Giovanni and Jane decided to use a BFA to protect what they rightfully own in the event of their divorce.
After 5 years, Giovanni and Jane did divorce. Fortunately, they didn’t have a hard time with the property settlement procedure due to the BFA. Giovanni was able to secure his assets without the fear of his ex-wife Jane trying to make claims for it.
Importance of Seeking Legal Advice
This article has discussed superannuation agreements Family Law Act. JB Solicitors understands that superannuation funds are one of the most huge assets sought after during divorce and separation.
Hence, our lawyers can aid in making a binding financial agreement that can protect clients who have huge superannuation funds. We also have mediation and arbitration services who want to amicably settle on their property settlement procedures.
Contact us today for more information about superannuation agreements Family Law Act.
