Navigating Separation and Super

Splitting your financial assets during a separation or divorce is often complex and overwhelming. Superannuation can often be overlooked but it is incredibly important!

 

Navigating separation and divorce can be an extremely stressful time for all involved.  The divorce rate has been falling over the last 20 years, however, the divorce rates in couples who have been married for 20 years or longer, is increasing.  With more and more Australians going it alone in retirement, the importance of superannuation in divorce proceedings, is greater than ever.

All situations are different, but in general, a couple’s superannuation is included in the overall ‘pool’ of assets (oddly not in WA however – I have no idea why!) along with your house, invested assets and any savings.  And given women generally have a lower balance of super than men, due to a number of social and work issues, this presents an issue for women to appropriately fund their retirement and be financially secure in their later years.

We have worked alongside many couples and individuals in their 50’s and 60’s to ensure their retirement needs are taken into consideration when separating or divorcing.  From our experience, there  are a number of issues to take into consideration:

– How much do I need in retirement to lead a certain level of lifestyle?

– What will be the impact on any Centrelink entitlements that I may be eligible for?

– What legal advice do I require and who can assist me in this area?

– What about any non-super assets I may receive as part of the settlement?

– What will my cash flow look like once we separate?

Being educated, understanding your options and getting help from the experts will ensure that you are prepared to make the most of your situation and create the best outcome possible.

For those who are members of a Self Managed Super Fund or a Defined Benefit Scheme, it is even more important to speak to a specialist about how to best navigate these waters as there is added complexity.

Essentially, you are not alone in having to make these decisions.  Separation is emotionally hard. Having expert and personalised advice on your financial arrangements will make a significant difference to your financial security, both now and in the future.   

For more information on how we can help you plan for YOUR ideal retirement, contact us at Collective Wealth Advisers.  We tackle today, and tomorrow, together!