Steve from Murrumbeena phoned into Talking Lifestyle’s On the Money, asking for advice on behalf of his daughter who was going through a divorce.

His daughter was 18 at the time she first started working and by 21 she was married. Now, 20 years later she is getting a divorce and her husband is asking for half of the money inside her superfund.

Steve wanted to know whether he was allowed to do this despite having never worked a day in his life.

“Is he entitled to half? He has never worked a day in his life nor has he ever put any money towards it… and now he wants half”. Steve asked.

Superannuation expert Bryan Ashenden from BT Financial Group was on hand to explain and said that the recent changes did actually allow a spouse to have a portion of their partner’s super.

“There were some changes a number of years ago that says superannuation is actually an asset when it comes to the breakdown of a relationship”. He said.

If there is a divorce, superannuation can now be split between ex-spouses. It’s not necessarily 50%... [however] the court can take it into account”. 

Steve also wondered if he wasn’t yet at the age of retirement, then how could he take the money out?

“If the account does get split, it still stays in the superannuation system, so he will have to wait until he meets the retirement condition”. Bryan said. 

Ex-partners are able to move the money into their own superfunds or SMSFs, but they will not be able to withdraw and take the money out of the system.

To listen to the full interview, click the video above.