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Watch out for the tax consequences… Splitting super can affect your tax situation, as lump sum payments and pensions are calculated and taxed separately for members and non-member spouses. So it may be more attractive to look at swapping other assets for super. …and don’t forget your will! You will need to update your will and your beneficiaries, particularly if you have children, to make sure the right people inherit your assets. Get back on track for retirement A divorce can end up leaving you with a reduced retirement nest egg. If you’ve paid some of your super to your former spouse, you could get your long-term investment strategy back on track by:  working out your budget  bringing your super accounts together to reduce fees  taking advantage of super’s tax concessions for - pre-tax contributions - after-tax contributions. And if you’ve received super as part of a divorce settlement, you should think about the most suitable insurance cover and investment mix for you in light of your changed circumstances. If you’re going through a divorce and need financial advice to prepare for your future, call us on 07 4642 1179 today. [1] The government is proposing to double the 15% tax rate on before-tax personal contributions to 30% from 1 July 2012 for individuals earning more than $300,000 pa. As at February 2013, this proposal has not yet been legislated. [2] $25,000 concessional contributions limit applies for the 2012/2013 financial year. Concessional contributions include employer super contributions and personal before-tax contributions, eg salary sacrifice contributions.

By financial planner James Smith Hammock Financial Group 2013 March


For better or for worse - what happens when times get tough?  

When you’re together it may be easy to grow your super together. But what happens to your super savings when you’re facing a divorce?