Divorce and your KiwiSaver

Going through a divorce is an extremely difficult experience; among the emotional challenges are the financial issues, particularly when you consider what will happen to your KiwiSaver?

The good news is the balance in your KiwiSaver prior to the relationship is safe and will not be divided between you and your partner when you divorce. However, the amount in funds contributed, and the growth incurred in your KiwiSaver during the relationship falls under the category of relationship property and as such is to be divided equally amongst a divorcing couple.

Regardless of whether the value is made from government contributions, employer contributions or individual contributions, it will still be categorised as relationship property and divided appropriately. The value of your KiwiSaver (to be divided) will usually be at the date you and your partner separate or the date of resolution.

Generally, the Court will order your KiwiSaver fund to pay out a portion of your funds to your partner’s bank account or KiwiSaver unless there is another option available. For instance, you and your partner may agree that he or she will take a larger share from the relationship’s other financial assets instead of from your KiwiSaver.

It is also important to know if full disclosure is not given during the divorce settlement in relation to your assets, your former spouse will have the option to take proceedings against you.

Posted on 29 August '18 by , under super.