This paper provides an overview of the superannuation splitting rules and the tax considerations. This is an increasingly relevant area. Divorce rates are over 40% and a high proportion of the one million SMSF members are legally married or de facto spouses. A well-orchestrated super split can lead to a more satisfactory settlement outcome. All advisers in the SMSF area should have at least a basic understanding of the applicable concepts, options, practical requirements and taxation considerations.
This paper covers:
- key concepts and available options
- practical requirements and process
- issues regarding governance, valuations, lumpy assets and in specie transfers
- tax implications and characteristics of splittable payments
- CGT and stamp duty relief
- related issue - blended families and fixed pensions.