Couples have the option of splitting their super entitlements on divorce or separation.
Following is some important information about Family Law matters and how they are handled by AvSuper.
Under superannuation law, the term spouse includes married, de facto and same sex partners who live together in a genuine domestic basis in a relationship as a couple.
Superannuation savings can be split as part of the property settlement either by a private Splitting Agreement between the parties or by Court Order. It can also be ‘flagged’ by a Flagging Agreement or Order.
‘Splitting’ means that a portion is to be allocated to a member’s spouse as referred to in the Agreement or Order.
‘Flagging’ means that the decision on how to split the benefit is deferred until a later date. If the super becomes payable to the member while a flag is in place, the money cannot be paid and the Fund must notify the parties or the Court. AvSuper must then wait for further instructions from the parties or the Court before paying out any of the savings.