What super do you have?
Superannuation is property and, therefore, each spouse’s superannuation forms part of the combined pool of property. Determining a value for superannuation can be challenging. Different types of superannuation have different methods of valuation. Therefore, annual ‘Member Statements’ should not always be relied on for the true ‘Family Law’ value of the funds. So what super do you have?
Accumulation Interest Fund
This is the most common and simplest form of superannuation. It is where the member is entitled to an amount accumulated in the member’s account. The total represents the contributions made by the employer as well as the employee together with interest earned, minus any taxes or charges. In this fund the ‘Member Statement’ value can be relied upon.
Defined Benefit Fund
This is where the benefit is calculated by a formula, usually using the final salary and the years of service. The employer carries the investment risk. If the investment returns are low, the employer needs to increase contributions to allow the fund to meet the entitlement. A lot of large public sector funds are defined benefit.
Still have queries regarding superannuation in a family law property division? Please contact our Brisbane office on (07) 3221 4300 to arrange a no obligation, fixed cost appointment with an experienced family lawyer. Alternatively, fill out our online form here.