Month: September 2026

Superannuation and Relationship Breakdown

by
Superannuation_and_relationship_breakdown

Superannuation and Relationship Breakdown: What Happens to Your Super?

The end of a marriage or de facto relationship is rarely straightforward. Alongside the personal and emotional impact, there are often difficult decisions to make about the family home, savings, investments, debts and superannuation.

Super can be particularly confusing because it is money held for retirement rather than an asset sitting in an ordinary bank account. However, under Australian family law, superannuation is generally treated as property and may be considered as part of a financial settlement following separation.

As a Financial Adviser in Geelong, my role is not to provide family law advice or determine how assets should be divided. That is a matter for qualified family lawyers and, where required, the courts. What I can do is help clients understand how a proposed superannuation split may affect their retirement savings, investment strategy and longer-term financial position.

Superannuation forms part of the financial picture
When a couple separates, their superannuation interests are generally included in the overall pool of assets and liabilities considered during the property-settlement process.

This applies to married couples and eligible de facto couples, including same-sex relationships. A superannuation split may be formalised through:

  • a legally binding superannuation agreement;
  • consent orders approved by the court; or
  • an order made by the court when the parties cannot agree.

A superannuation agreement requires each party to receive independent legal advice before signing.

It is important to understand that a super split is not automatically a 50–50 division. Super is considered alongside other assets, debts, contributions and relevant circumstances within the broader settlement.

For example, one person may retain more of the family home while the other receives a greater share of the combined superannuation. The appropriate outcome depends on the couple’s circumstances and the legal agreement or court orders reached.

Super splitting does not usually release the money as cash

A common misunderstanding is that the person receiving part of their former partner’s super can immediately withdraw it.

Usually, that is not the case.

For a typical accumulation fund, the agreed amount may be:

transferred into a new account in the same super fund; or
rolled over into another complying super fund chosen by the receiving spouse.
The transferred amount remains within the superannuation system and is generally preserved until the recipient meets a valid condition of release, such as retirement.

This distinction is important when planning for living expenses after separation. A person might receive a substantial super entitlement but still need other accessible savings or income to meet their immediate needs.

How is the value of super determined?
For a standard accumulation account, the recent account balance may provide a reasonable starting point.

Other super interests can be more difficult to value, including:

  • defined-benefit funds;
  • partially vested interests;
  • certain public-sector schemes;
  • lifetime pensions and annuities;
  • self-managed super funds; and
  • super funds holding property or unusual assets.

These arrangements may require specialist valuation rather than simply relying on the balance shown on an annual statement. The applicable valuation framework was updated when the Family Law (Superannuation) Regulations 2025 commenced on 1 April 2025.

Obtaining an accurate value early in the process can reduce the risk of negotiating a settlement using incomplete or misleading figures.

Obtaining information about a former partner’s super

Financial disclosure is an important part of a property settlement.

An eligible person can request information directly from a superannuation trustee using the appropriate family-law forms. The fund may charge an administration fee for providing the information.

Where court proceedings are already underway and it is unclear which super funds a former spouse holds, a party or their legal representative may request information held by the Australian Taxation Office through the Commonwealth Courts Portal. This request is only available as part of a current property-settlement proceeding.

The ATO information can help identify the relevant funds, after which more detailed and current information can be sought from the trustees.

What happens if a retirement pension has already started?

Super splitting can become more complicated when one person has already retired and commenced an account-based pension or another superannuation income stream.

Depending on the type of pension and the fund rules, the income stream may be:

  • partially or fully commuted to a lump sum;
  • reduced after an amount is transferred to the former spouse;
  • divided into separate interests; or
  • subject to an ongoing payment split.

Some defined-benefit pensions and specialist income streams operate under different rules and may not be capable of being divided in the same way as a conventional accumulation account.

This is an area where legal, taxation and financial advice should be coordinated before final orders or agreements are completed.

Transfer balance cap implications

Where a superannuation income stream is already in the retirement phase, splitting or commuting it may affect the transfer balance accounts of both parties.

For example, a partial commutation may create a debit in the member spouse’s transfer balance account. If the receiving spouse later uses the transferred amount to start their own retirement-phase income stream, that may create a transfer balance credit for them.

The reporting is generally handled by the super fund, but both parties should understand how the transaction affects their remaining ability to move money into the retirement phase.

This may be particularly important for clients with larger superannuation balances or several pension accounts.

Tax components generally move proportionately

Super accounts may contain both tax-free and taxable components.

When an interest is split, those components are generally divided in the same proportions that applied immediately before the split. A person cannot ordinarily select only the tax-free component for transfer.

Future benefits paid from the resulting super interests are then taxed under the usual superannuation rules applying to each recipient.

The split may also alter each person’s total super balance, which can affect:

  • eligibility to make certain future contributions;
  • access to carry-forward concessional contributions;
  • non-concessional contribution limits; and
  • broader retirement-planning strategies.

The person transferring super may move below a relevant threshold, while the person receiving it may move above one. These effects should be reviewed before either party makes further contributions.

What about self-managed super funds?

Superannuation splitting rules also apply to self-managed super funds, but the administration can be substantially more complex.

The SMSF trustees must comply with the agreement or court orders while continuing to meet the fund’s legal, investment, reporting and record-keeping obligations.

A relationship breakdown may require the fund to:

  • transfer cash or investments to another super fund;
  • sell assets to create sufficient liquidity;
  • change trustees or directors;
  • update its trust deed and investment strategy; or
    be wound up entirely.

Problems can arise when an SMSF holds an indivisible asset, such as a business property, but has insufficient cash to satisfy a splitting order.

Where both former partners remain trustees, ongoing cooperation may also become difficult. Early advice from a family lawyer, SMSF specialist, accountant and financial adviser can help identify practical problems before the final agreement is made.

Rebuild your financial plan after separation
A superannuation split is only one part of the financial adjustment that follows separation.

Both parties may need to reconsider:

  • their retirement age;
  • expected retirement income;
  • investment risk;
  • insurance arrangements;
  • super contributions;
  • personal debts;
  • housing costs;
  • Centrelink entitlements; and
    estate-planning documents.

Beneficiary nominations, Wills, powers of attorney and insurance beneficiaries should also be reviewed. Separation does not automatically update every document or nomination.

The financial plan that suited you as a couple may no longer be appropriate when you are managing your finances independently.

Get legal advice before agreeing to a split

Superannuation splitting is fundamentally a family-law process. A financial adviser should not replace the role of a family lawyer.

Before signing an agreement or applying for consent orders, obtain advice about:

whether the proposed settlement is legally appropriate;
how the super interest should be valued;
the wording of the proposed orders;
notice requirements involving the super fund trustee; and
whether the agreement will be legally enforceable.
For proposed consent orders, the superannuation trustee generally needs to receive the draft orders at least 28 days before they are filed, allowing the trustee an opportunity to object.

Financial advice after a relationship breakdown

Once the legal position is understood, financial advice can help you assess what the proposed outcome means in practical terms.

As a Financial Planner in Geelong, I can work alongside your lawyer and accountant to help you understand:

  • your projected retirement balance after the split;
  • whether your investment strategy remains suitable;
  • how much you may need to contribute in future;
  • the implications for an existing pension;
  • potential tax and transfer balance cap issues; and
  • how to rebuild your longer-term financial security.

For people across Geelong and Greater Geelong, the aim is not simply to complete the superannuation transfer. It is to emerge from the process with a clear and realistic plan for the next stage of life.

Relationship breakdown is difficult enough without uncertainty about your financial future. Careful legal and financial advice can help you make informed decisions, avoid preventable mistakes and begin rebuilding with greater confidence.

Estate Planning – Protecting Your Family and Your Legacy

by
Estate_planning

Estate Planning – Protecting Your Family and Your Legacy

Most people spend decades building their wealth, whether it’s their family home, superannuation, investments or savings. Yet many people spend very little time thinking about what happens to those assets when they’re no longer here.

Estate planning isn’t just about preparing a Will. It’s about making sure your wishes are carried out, your family is looked after, and unnecessary stress, delays and tax consequences are minimised.

As a Financial Adviser in Geelong, I’ve found that many people believe estate planning is something they’ll “get around to one day.” Unfortunately, life doesn’t always give us that opportunity.

A well-prepared estate plan gives you peace of mind and provides clarity for the people you care about most.

Estate Planning Is More Than Writing a Will

A valid Will is an essential part of every estate plan, but it’s only one piece of the puzzle.

A comprehensive estate plan may also include:

  • A current Will
  • Enduring Power of Attorney
  • Medical Treatment Decision Maker
  • Superannuation beneficiary nominations
  • Consideration of testamentary trusts
  • Tax planning strategies
  • Clear instructions for significant assets

The goal is to ensure your assets are transferred as efficiently as possible while reflecting your wishes.

Why Having a Valid Will Matters

If you pass away without a valid Will, you are said to have died intestate.

When this happens, Victorian law determines how your estate is distributed. That may not reflect what you intended, and it can create unnecessary complications for your family.

A properly prepared Will allows you to:

  • Decide who receives your assets.
  • Appoint an executor you trust.
  • Provide for children or grandchildren.
  • Leave gifts to charities or other beneficiaries.
  • Help reduce the likelihood of family disputes.

It’s one of the simplest yet most important financial documents you’ll ever prepare.

Don’t Forget About Superannuation

One of the biggest misconceptions I encounter is that superannuation automatically forms part of your estate.

In most cases, it doesn’t.

Your super fund is governed by its own rules, and unless you’ve completed a valid Binding Death Benefit Nomination, the trustee of the fund may decide who receives your superannuation death benefits.

Reviewing your nomination regularly is particularly important if you’ve experienced major life changes such as:

  • Marriage
  • Divorce
  • The birth of children
  • Retirement
  • The death of a nominated beneficiary

Making sure these nominations remain current can prevent significant issues later.

Understanding the Tax Implications

Many people assume inheritances are always tax free.

While that is often true for many assets, the overall picture can be much more complicated.

Depending on the circumstances, tax may apply to:

  • Superannuation death benefits paid to certain beneficiaries.
  • Capital gains when inherited assets are eventually sold.
  • Investment portfolios.
  • Business assets.

Good estate planning considers these issues well before they become a problem.

With appropriate planning, it may be possible to reduce unnecessary tax and maximise the value ultimately received by your beneficiaries.

Testamentary Trusts – Are They Worth Considering?

For some families, a testamentary trust can provide additional flexibility and protection.

A testamentary trust is created through your Will and comes into existence after your death.

While they aren’t suitable for everyone, they may provide benefits such as:

  • Greater flexibility in distributing income.
  • Potential tax advantages.
  • Asset protection.
  • Better management of assets for younger beneficiaries.
  • Protection where family circumstances are more complex.

Whether a testamentary trust is appropriate depends entirely on your individual circumstances and should always be considered alongside legal and taxation advice.

Keeping Good Records
One aspect of estate planning that’s often overlooked is maintaining accurate records.

Your executor may need information about:

  • Property purchase dates.
  • Share purchase records.
  • Investment cost bases.
  • Superannuation details.
  • Insurance policies.
  • Bank accounts.
  • Loans and liabilities.

Having these records readily available can make administering an estate significantly easier and help avoid unnecessary delays.

Review Your Estate Plan Regularly

Estate planning isn’t something you complete once and forget about.

Life changes, and your estate plan should change with it.

I generally recommend reviewing your estate planning whenever you experience significant life events, including:

  • Marriage or separation
  • Having children or grandchildren
  • Buying or selling property
  • Receiving an inheritance
  • Retirement
  • Changes to tax or superannuation legislation

Even if nothing major has changed, reviewing your arrangements every few years is a sensible habit.

Looking After the People You Leave Behind

One of the greatest benefits of estate planning isn’t financial.

It’s knowing you’ve made things easier for your family during what will already be a difficult time.

Clear instructions, organised documentation and thoughtful planning can reduce confusion, minimise disputes and provide certainty when it’s needed most.

For many people, that’s every bit as important as the financial outcome itself.

How Financial Advice Can Help

Estate planning often brings together several areas of expertise, including financial advice, legal advice and taxation planning.

As a Financial Planner in Geelong, I work with clients across Greater Geelong to ensure their financial strategies align with their broader estate planning objectives.

Together we can review:

  • Your retirement strategy.
  • Superannuation beneficiary nominations.
  • Investment structures.
  • Potential tax implications.
  • Wealth transfer strategies.
  • Estate planning considerations.

While your solicitor prepares the legal documents, financial advice can help ensure your overall strategy supports your long-term goals and helps protect the people who matter most.

If you’d like to review your estate planning arrangements or discuss how they fit into your overall financial plan, I’d be pleased to help.

Preparing for an Inheritance – What It Could Mean for Your Financial Future

by
Preparing_for_an_inheritance

For many people, an inheritance represents far more than receiving money or assets. It often follows the loss of a loved one, making it an emotional and sometimes overwhelming experience. Alongside the grief, there can also be important financial decisions that deserve careful thought.

As a Financial Adviser in Geelong, I’ve found that many people don’t include a future inheritance in their financial plans. Others assume they’ll eventually receive one but have little idea of when it may happen, what it may involve, or how it could affect their long-term financial position.

While nobody should rely on an inheritance to fund their retirement, understanding how it may fit into your broader financial strategy can help you make better decisions when the time comes.

Australia’s Largest Wealth Transfer

Australia is currently experiencing one of the largest transfers of wealth in its history.

Over the coming decades, trillions of dollars are expected to pass from older Australians to their children and grandchildren. Much of this wealth will consist of:

  • Family homes
  • Investment properties
  • Superannuation balances
  • Shares and managed investments
  • Cash savings
  • Personal assets

For many families in Greater Geelong, an inheritance may become one of the largest financial events they’ll ever experience.

That doesn’t necessarily mean every inheritance will be substantial, but it does highlight why planning ahead can be worthwhile.

Should You Include an Inheritance in Your Retirement Plan?

This is one of the most common questions I receive.
My general advice is simple:

Build your retirement plan so it works without relying on an inheritance.

There are simply too many unknowns.

The amount inherited may differ from expectations. Circumstances can change. Medical or aged care costs may reduce an estate, and timing is impossible to predict.

If an inheritance eventually arrives, it can strengthen your financial position rather than becoming something your retirement depends upon.

More Than Just Money

An inheritance may include assets that require careful consideration.

These might include:

The family home
An investment property
A share portfolio
Superannuation death benefits
Collectables or valuable personal assets
Each asset comes with different financial, legal and tax considerations.

For example, inheriting a property may create decisions about whether to sell it, keep it as an investment or move into it. Those decisions may have capital gains tax implications that are worth understanding before acting.

The Importance of Estate Planning

Preparing an inheritance isn’t only about those receiving it.

It’s equally important for those leaving assets behind.

Having an up-to-date estate plan can provide certainty for your family and reduce the likelihood of disagreements during an already difficult time.

A good estate plan generally includes:

  • A valid and current Will
  • Enduring Powers of Attorney
  • Appropriate beneficiary arrangements
  • Consideration of tax implications
  • Clear instructions regarding significant assets

Many Australians are surprised to learn that superannuation doesn’t automatically form part of their Will.

Instead, your super fund generally requires a Binding Death Benefit Nomination if you want to direct who receives your superannuation after your death.

Reviewing these nominations regularly is an important part of good financial planning.

Understanding the Tax Implications

One of the biggest misconceptions is that all inheritances are completely tax-free.

While receiving an inheritance itself is generally not taxable in Australia, some inherited assets may create tax consequences later.

Examples include:

  • Selling an inherited investment property
  • Selling inherited shares
  • Receiving taxable components of superannuation death benefits
  • Capital gains tax that may apply depending on the circumstances

Every estate is different, so it’s important not to assume the same rules apply to everyone.

Seeking professional advice before making major financial decisions can help avoid costly mistakes.

Family Conversations Matter

Money conversations are rarely easy.

Many families avoid discussing inheritances because they don’t want to create awkwardness or appear focused on money.

However, open conversations can often reduce uncertainty and avoid misunderstandings later.

Without discussing exact dollar amounts, families can often benefit from talking about:

  • General wishes for the estate
  • Who will act as executor
  • Whether the family home is likely to be sold or retained
  • Important documents and where they’re kept
  • Any special circumstances affecting family members

Clear communication today can save considerable stress in the future.

Making Wise Decisions After Receiving an Inheritance

It’s understandable to feel pressure to make immediate decisions after receiving an inheritance.

In many cases, slowing down is the better approach.

Rather than making major purchases or investment decisions straight away, it can be worthwhile to consider how the inheritance fits within your broader financial goals.

It may help you:

  • Reduce debt
  • Strengthen your retirement savings
  • Invest for long-term growth
  • Assist children or grandchildren
  • Build financial security for future generations

The best decision will depend entirely on your own circumstances and objectives.

How Financial Advice Can Help

Whether you’re expecting to receive an inheritance or planning how your own estate will eventually be distributed, professional advice can provide valuable clarity.

As a Financial Planner in Geelong, I work with individuals and families across Greater Geelong to help them make informed financial decisions at every stage of life.

Together we can consider:

  • Estate planning strategies
  • Retirement planning
  • Superannuation advice
  • Tax considerations
  • Investment strategies
  • Long-term wealth planning

Preparing today can make a significant difference to both your financial future and the financial wellbeing of those you care about.

If you’d like to discuss how an inheritance could affect your financial position, or you’d like assistance with estate planning, I’d be happy to help you develop a strategy that’s right for your circumstances.

Protecting and Growing Your Wealth in Uncertain Times

by
group of seniors meeting

Economic uncertainty is something every investor will experience. Markets rise and fall, interest rates change, inflation comes and goes, and global events can quickly affect investment markets. While these periods can feel unsettling, they are a normal part of investing.

For people approaching retirement or already retired, market uncertainty can be even more concerning. After spending decades building your wealth, protecting what you’ve accumulated becomes just as important as continuing to grow it.

The key isn’t choosing between growth and protection—it’s finding the right balance.

Growth and protection don’t have to compete

Many people think investing is a choice between taking risks for higher returns or playing it safe to avoid losses. In reality, a well-constructed investment portfolio usually aims to achieve both objectives.</h
Growth investments help your money keep pace with inflation and provide long-term capital appreciation. Defensive investments help reduce the impact of market downturns and provide greater stability when markets become volatile.

Finding the right mix depends on several factors, including:

  • Your age and stage of life
  • When you’ll need to access your money
  • Your income requirements
  • Your tolerance for investment risk
  • Your overall financial goals

A portfolio that is appropriate for someone in their thirties is unlikely to suit someone preparing for retirement.

Understanding investment risk

Investment risk isn’t simply about whether markets go up or down.

The more important question is whether your investment strategy allows you to achieve your long-term objectives while helping you sleep comfortably at night.

Before making investment decisions, it’s worth asking yourself:

  • How would I react if my portfolio fell by 15% or 20%?
  • Would I be tempted to sell during a market downturn?
  • How much growth do I actually need to achieve my retirement goals?
  • Do I have enough stable investments to cover my short-term income needs?

These questions often reveal more about the right investment strategy than trying to predict what markets will do next.

Diversification remains one of the most effective strategies

One of the simplest ways to reduce investment risk is through diversification.

Rather than relying on a single investment or asset class, diversification spreads your investments across different sectors, industries and investment types. This means that when one area of the market performs poorly, another may perform more strongly.

A diversified portfolio may include:

  • Australian shares
  • International shares
  • Fixed interest investments
  • Cash
  • Property
  • Infrastructure
  • Alternative investments

No investment performs well all the time. Diversification helps reduce the impact of any single investment on your overall portfolio.

Defensive investments still have an important role

When markets become volatile, defensive investments can provide valuable stability.

These investments generally aim to preserve capital and produce more consistent returns rather than deliver high growth.

Examples include:

Quality fixed interest investments

Government and high-quality corporate bonds have traditionally provided stability during periods of market uncertainty.

After several years of exceptionally low interest rates, bonds are once again producing more attractive income, making them an increasingly important component of many retirement portfolios.

Defensive shares

Not all shares carry the same level of risk.

Companies that provide essential products and services—such as utilities, healthcare, food production and consumer staples—often experience more stable earnings during economic slowdowns because people continue using their products regardless of economic conditions.

These businesses may provide reliable dividend income while also offering the potential for long-term capital growth.

Inflation is still an important consideration

While protecting your capital is essential, it’s equally important to protect your purchasing power.

Even moderate inflation gradually reduces what your money can buy over time.

That’s why portfolios designed solely around cash may struggle to maintain their real value over long retirement periods.

A balanced investment strategy aims to preserve capital while still generating enough growth to help offset inflation over many years.

Bonds are becoming more attractive again

Higher interest rates have changed the outlook for fixed interest investments.

For many years, historically low interest rates meant bonds generated relatively modest returns. Today, higher yields provide investors with greater income opportunities while also restoring bonds as an effective diversifier within investment portfolios.

If interest rates eventually begin to fall, existing bonds may also increase in value, potentially providing investors with both income and capital gains.

This doesn’t mean every investor should dramatically increase their bond allocation, but it does highlight why regular portfolio reviews remain important as economic conditions change.

Consider protecting against inflation

Some investments are specifically designed to help reduce the impact of rising prices.

These may include:

  • Inflation-linked bonds
  • Floating-rate securities
  • Certain infrastructure investments
  • Real assets such as property

These investments can help preserve purchasing power when inflation remains elevated for extended periods.

International investing introduces currency considerations

Investing globally provides access to many of the world’s largest and fastest-growing companies.

However, international investments also introduce currency risk.

Movements in the Australian dollar can affect the value of overseas investments, regardless of how the underlying investments perform.

In some situations, partially hedging currency exposure may reduce volatility. In others, leaving investments unhedged can provide additional diversification.

The right approach depends on your overall investment strategy and financial objectives.

Don’t overlook the importance of liquidity

Liquidity simply means having access to money when you need it.

Even the strongest long-term investment strategy should include sufficient cash or readily accessible investments to cover unexpected expenses and planned withdrawals.

Many retirees choose to maintain a cash reserve to fund one to two years of living expenses. This can reduce the need to sell long-term investments during periods of market weakness.

Having adequate liquidity often provides something equally valuable—peace of mind.

Focus on what you can control

No one can consistently predict market movements.

Instead of reacting to headlines, successful long-term investors usually focus on the factors they can control:

  • Maintaining a diversified portfolio
  • Keeping investment costs low
  • Reviewing their strategy regularly
  • Staying invested during market volatility
  • Aligning investments with their personal goals
  • Seeking professional advice when circumstances change

History has repeatedly shown that markets experience periods of uncertainty, but they’ve also demonstrated remarkable resilience over the long term.

The value of professional advice
Every investor’s situation is different.

The right investment strategy depends on your retirement plans, income requirements, tax position, existing assets and willingness to accept risk.

Regular reviews help ensure your portfolio continues to reflect your goals as markets and personal circumstances change.
Rather than reacting emotionally during uncertain periods, having a well-considered investment strategy can provide greater confidence and help you stay focused on your long-term objectives.

How Wade Vautier can help

If you’re approaching retirement or already retired, having the right balance between protecting your wealth and continuing to grow it is more important than ever.

Wade Vautier works with clients throughout Geelong and the surrounding region to develop personalised investment strategies that align with their retirement goals, income needs and tolerance for risk.

If you’d like to review your current portfolio or discuss whether your investments remain appropriate for today’s economic environment, contact Wade Vautier to arrange a conversation.