Update on Superannuation Valuations for Family Law in NSW
The NSW State Superannuation Scheme has now amended their Regulations to allow for the splitting of superannuation interests in Family Law. Up until this point, the trustees were effectively flagging the growth phase interests, awaiting the amenedments to the acts to allow for either splitting and the transfer of the non-member spouse's interest to another fund.
In payment phase splits (ie. pension had commenced), the trustees were spilitting the payment of the pension rather than the pension itself. The trustees can no transfer the non-member spouse benefit to another fund.
One of the problems that have been arising with the new system, is that non-member spouses receive their interest as a lump sum, whilst the member will only continue to receive a pension. This causes two areas of disagreement and confusion:
One, as the interest is split as a lump sum, the non-members lump sum will be greater than the members lump sum assuming a 50/50 split.
Two, the member's family law value represents the present value of an income stream and if over age 60, will never have access to the capital amount represented by the Family Law value.
If you want to find out more, call Arnold Shields on 02 9411 5422 or visit our Superannuation Valuation page
Disclaimer: The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. All content relates to the current financial year only. Future changes to tax laws, thresholds or administrative requirements may affect the accuracy or relevance of this information, so you should always confirm that the guidance remains current. While every effort has been made to ensure accuracy at the time of publication, Dolman Bateman accepts no responsibility or liability for any loss or damage arising from reliance on this information. You should seek professional advice tailored to your circumstances before making any financial or tax decision.
