The Law and You: Domestic Violence and superannuation

Posted on 5 July, 2017

Trigger warning: Family violence.

Studies show that women are three times more likely than men to experience violence from a partner or former partner. Statistics show that more than 70 women a year die in Australia from violence inflicted upon them by an abusive partner. We shake our heads in disbelief. Why don’t these victims just leave their violent partners?

This column explores the possibility of access to superannuation by victims of domestic violence. It’s an important topic and you’ll want to seek expert advice so you understand your rights and your position.

What do finances have to do with escaping from abusive behaviour?

When one partner is overly controlling of the amount of money the other partner can access, this can lead to financial abuse, a form of family violence. Lack of finances, combined with fear for their safety, leads many victims to feel trapped in an abusive relationship, with no options. Victims of domestic violence are also often isolated from their friends and family, making it more difficult to ask for help or financial assistance.

These victims often have no individual financial security and rely entirely on their partner’s income to survive. If they were to leave, they would have no money to support themselves or their children. They worry that their children will suffer because they cannot financially support them.

What about access to superannuation as a form of financial support?

Early access to superannuation could be a viable solution for victims experiencing domestic violence and financial control from their partners.

What does the law say about accessing super for domestic violence victims?

Some superannuation funds allow early access to monies in cases of severe financial hardship. Presently, however, it’s generally not possible for victims to access their superannuation funds to escape a violent relationship.

However, some superannuation funds have presented a proposal to the Australian Government to allow domestic violence victims to have early access to their superannuation so they have some independent financial means to leave the relationship. These funds are calling on governments to legislate to allow access to superannuation on compassionate grounds.

Isn’t super meant to be for retirement? Why should victims be allowed early access to funds?

The superannuation funds argue that any new initiative that would break the cycle of domestic violence and reduce the pain and suffering caused to victims should be supported. Providing a way for victims (predominantly women) to escape violent relationships is so important that it overrides the need to preserve super for retirement.

How important is access to super for domestic violence victims?

Access to super could save lives. It would also allow victims to retrain and give them the opportunity to re-join the workforce and become financially independent. It provides an opportunity to relocate and to pay a bond and rent and support their children. Victims can then focus on rebuilding their independence and begin contributing again to superannuation for their later retirement.

If you are experiencing these issues, it is wise to seek legal advice before taking action.

This expert column was prepared by Debra Parker, Partner, Watts McCray Lawyers Canberra.

This is a sponsored editorial. For more information on sponsored editorials, click here.