Divorce or separation can be extremely difficult. On top of the emotional stress, it¡¯s often quite overwhelming to keep track of everything. However, planning for your future remains more important than ever, and that includes managing your superannuation.
If I¡¯m in the middle of a divorce or separation, what should I do first?
Divorce is challenging, but it be might be more common than you realise. In Australia, around 50,000 divorces are granted every year. The average length of a marriage prior to divorce is 12 years, and nearly 50 per cent of cases involve children.
However, every divorce or separation is different, and each of them come with their own set of challenges. Remember to be kind to yourself and never hesitate to ask for help. You¡¯ll need to do a lot of short-term and long-term planning during a time that will often be emotionally draining.
To protect your financial future, you should first take stock of all your financial assets (including debts). At the same time, establish new financial accounts that are solely in your own name to protect ongoing financial gains, such as your income.
You should also prevent debt being created in your name by cancelling shared credit cards and having your details removed from any bills or rent agreements that you are no longer responsible for.
As part of your financial stocktake, you should have all of the details you need to access your super fund account. If you¡¯re still unsure about your super fund details, you can use your Tax File Number to register an account with myGov to keep track of your accounts.
Of all Australians with a super account, 40 per cent have more than one account, which goes to show that super can be difficult to track, even at the best of times.
There will be a lot of financial challenges that lie ahead and it¡¯s okay to feel as though you¡¯re not keeping up with everything. To help, the Australian Government¡¯s MoneySmart website provides a detailed checklist that you can use to keep track of money during a divorce or separation.
What will happen to my super during a divorce or separation?
Essentially, super is considered as property in the event of a relationship breakdown, so like any other asset it can be divided between partners by agreement or court order. This includes marriage or de facto relationships, both heterosexual or same sex. The rules do not apply to de facto couples in Western Australia.
Generally speaking, there are three options when deciding what happens to your superannuation benefits at the time of a divorce or separation.