08/09/2026
DON'T LOSE YOUR SUPER IN A DIVORCE! THE UNIQUE RULES OF SMSF ASSET SPLITTING 🚨
Under the Family Law Act, specifically Section 90XT, the court holds the jurisdiction to issue superannuation splitting orders for married couples.To protect your financial future and keep the fund compliant with the ATO, the restructuring must be handled with precision.
📊 Valuation Rules: Rather than relying on standard annual member statements, the actual underlying assets of the fund must be formally valued. This is critical if the SMSF holds illiquid assets like commercial property.
📋 Notice Rule: A court cannot finalize a Section 90XT order unless the SMSF Trustee has been granted procedural fairness. The fund's trustee must be formally notified of the proposed terms and given a right to object before the orders are legally binding.
🔄 Fund Restructuring & Rollovers: Because ex-partners rarely remain co-trustees of the same fund post-divorce, one party typically exits. This requires a formal rollover of benefits to a new fund, which must be executed without triggering unintended tax penalties.
🛡️ Capital Gains Mitigation: Moving or liquidating assets to satisfy a family law split can trigger catastrophic tax events if done incorrectly. Properly drafted orders ensure the fund accesses relationship breakdown CGT rollover relief
⚖️ Navigating a complex asset split? Let the team at Eve Legal guide you through the process seamlessly. Send us a message or click the link in our bio to schedule a confidential discussion.
