Generally speaking, it is unlikely that in the event the parties went through a property settlement that they would both remain as members in the SMSF. If this is the case, the SMSF is wound up and each member spouse would then make their own arrangements for their superannuation moving forward.
If the SMSF holds assets such as shares and real estate in addition to insurances in the name of the SMSF and not individual members, all trustees (normally the parties to the relationship) must agree to how they are to be divided.
It is also highly beneficial that the parties obtain financial advise from an accountant both individually and as trustees of the SMSF in order to discuss tax implications and the impact of dissolving the SMSF.
Although it sounds relatively simple, it is quite a mechanical process that requires consent and cooperation between the parties. In the event that there is disagreement, then the parties are able to seek such dissolvement and distribution of assets through the Federal Circuit and Family Court of Australia.
It is a very niche area of family law and it is important that you get advice from a team that are experienced in dealing with SMSF.
Family Focus Legal have experienced solicitors who are well versed in the ins and outs of SMSF and will be able to guide you through your legal obligations in the event of a separation. Please feel free to reach out to our team for advice and guidance at any time.
