Non-disclosure of Superannuation Assets in Family Law Property Settlement Procedures Just Got Harder

A new procedure could provide greater transparency when it comes to superannuation assets in a property settlement negotiation.

What is the issue concerning superannuation funds in a property settlement?

When a relationship has broken down, an interest in superannuation funds, or a superannuation payment, can be split between the parties by agreement or a Court Order. However, superannuation splitting can be a complex matter even where the expectation of full disclosure has been complied with.

Under the regime as it was until recently, separating partners were able to contact their partner’s superannuation fund to determine the balance in the fund. However, issues could arise where there are a number of funds involved, and one or both parties fail to disclose their superannuation interests fully.

What has changed to ensure greater transparency of superannuation assets in a property settlement?

From 1 April 2022, it will be more difficult for parties to hide or under-disclose superannuation interests. Separating partners will be able to apply to the Court to ask the Australian Tax Office (ATO) to provide details pertaining to their partner’s superannuation interests.

It should be noted that a party cannot apply to the ATO directly. This means that the provisions are only effective if Court proceedings have been initiated.

The new regime should improve the efficiency of the process and assist in achieving fairer outcomes before the Court.

Contact our Property Settlement Lawyers in Sydney, NSW

Szabo & Associates Solicitors can assist you with your property settlement or any aspect of divorce, separation and family law. Please contact us on 02 9281 5088 or complete the online contact form.