A self-managed super fund (“SMSF”) may provide tax advantages and flexibility in the investment of the parties’ superannuation during the relationship, however it can pose particular challenges following the breakdown of that relationship.
One of the difficulties is attributing a value to the SMSF for the purpose of property matters dealt with under the Family Law Act. Ensuring an accurate value is attributed to the SMSF is essential in assuring a fair outcome is achieved in a property settlement.
The SMSF may hold any number of assets, including shares in publicly listed and unlisted companies, unit trusts and real estate. Whilst the SMSF’s financial statements may provide a starting point and overview of the assets and liabilities of the SMSF, there is a risk those values may not reflect the current or true value, and it is not uncommon for an SMSF (and the assets held by it) to be formally valued for family law purposes.
If this is required, the Family Law Act sets out a mechanism for appointing a qualified valuer as an impartial ‘Single Expert’ to determine the value of the parties’ interest in the SMSF. It may also be necessary to engage additional experts to value the assets of the SMSF, including any real estate.
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