Separating couples will for the first time be able to divide superannuation in the same way as their other assets, under legislation introduced to Parliament today.
Under the current law, the Family Court has no power to divide superannuation when a marriage breaks down, even if the separating couple wants to split superannuation in their settlement.
The Family Law Legislation Amendment (Superannuation) Bill 2000 will allow people to make binding agreements about the division of superannuation on separation.
Couples will be able to choose what proportion of the superannuation will go to each person, making the decision to suit their individual circumstances. For example, people will be able to trade-off superannuation for housing where one parent needs to remain in the marital home to care for children.
Importantly, the superannuation agreements can be incorporated into financial agreements which are provided for in the Family Law Amendment Bill 1999. These agreements will allow people to avoid costly and protracted litigation by settling their financial affairs without going to court. The inclusion of superannuation within the scope of these agreements will enable people to settle their entire financial affairs in one agreement.
Where people are unable to agree, the court will be given power to split the value of superannuation as part of a property settlement. Trustees of superannuation funds will be required to comply with a binding agreement or a court order that provides for a division of a superannuation interest.
These reforms have been developed after much consideration and consultation with the community, the superannuation industry, family law professionals and the judiciary. No previous Government has been able to achieve these long overdue reforms.
13 April 2000
Media Contacts:
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Richard Allsop (Senator Kemp) (02) 6277 7360
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