Assets in an SMSF are regarded to be a part of the matrimonial asset base and also to be a family’s retirement nest egg. However, there are circumstances where it may not go as planned and there is a relationship break down for example separation or divorce with your spouse.

As the balance in an SMSF grows it can be a sizable asset to be dealt with, in an event of Divorce. Trustees must ensure to take decisions in accordance with the super regulations.

Best InterestLegal ProceedingsTrustee Restructures

The Trustees need to continue to act in the best interest of all Members even though the Members and Trustees of the Fund may have difficulties with their partner on a personal level.

In addition, the Trustees of the Fund cannot:

  • exclude another Trustee from the decision-making process
  • ignore requests to redeem assets and roll money over to another regulated complying super fund
  • take any action not allowed by Superannuation Legislation and the Trust Deed

In the event of a divorce or a relationship breakdown, there will be legal proceedings through Family Court or there will an out-of-court settlement to determine the division of super. The steps that should be taken are as follows:

  • Request information about spouse’s super from the SMSF
  • Determine the value of the super balance of the spouse
  • Reach to an agreement via an out-of-court settlement and obtain formal consent from the Family Court or apply for a court order if the individuals cannot come into an agreement
  • Send a copy of the agreement or court order to SMSF Trustee
  • If we are the accountant for your SMSF, please ensure to forward us a copy of the sealed court order when providing us with the supporting documents for the year end process. Please see here for more guidance on the annual process.

The content of this page only contains factual information and does not constitute legal or financial advice. Please ensure to seek legal aid from a family law specialist as they can offer valuable guidance on relationship breakdown and superannuation split.

In a Fund where the initial Trustee structure was set up as Individual Trustees and if there is a relationship breakdown, most likely one of the Trustees may leave the Fund. In this circumstance the remaining Trustee will need appoint a new Trustee or appoint a special purpose Trustee Company. The Trustees must ensure to have all the assets of the SMSF to be registered under the new Trustees. See our Trustee Structure page for more information.

                                                Guidance on the rules relating to Family Law and superannuation


√ Dissolve the current Fund and roll out the balance to a Retail Superfund or another complying SMSF

In the event of a Divorce the Trustees may decide to wind up the Fund and roll out the super to their respective retails funds according to the settlement or court order.

√ One Spouse to remain and one to exit

The Trustees of the Fund may decide for one spouse to exit the Fund and one to remain. In this instance the Trustees need to ensure there is enough liquidity in the Fund to pay out the exiting Member.

See our Transferring Benefits Out page for more information and to download the rollover form.

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We are Melbourne based with clients throughout Australia. Our SMSF administration service is mostly paperless. This enable us to charge a fair fee, resulting in a good value-proposition for you.

No Advice

Superannuation Warehouse is an accounting firm and do not provide financial advice. All information provided has been prepared without taking into account any of the Trustees’ objectives, financial situation or needs. Because of that, Trustees are advised to consider their own circumstances before engaging our services.