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Debra Rieniets

Feb 07, 2024

In-specie transfer due to Divorce - unable to access paperwork

in SMSF Technical Forum

This is a question of minimum appropriate audit evidence that is reasonable to expect when a divorce settlement requires shares to be transferred to a new fund. I will try to be succinct -

Event - note not the real names -

Original SMSF (Joint SF) included husband (B2) and wife (B1).
The couple were divorced/separated and a Family Court Order over Super.
The wife created a new SMSF (Singlelife SF)
The Singlelife SF received the in-specie transfers of shares valued at over $ 1 million.

The issue is that the file does not contain a Rollover Benefit Statement or the Family Court Order.

A - The trustee of Singlelife SF is unwilling to share information but has all off-market transfer documents

C - The accountant for Joint SF has provided a "Lump Sum Pre-payment Statement." and no other information has been made available.

The accountant of Singlelife SF has provided the Lump Sum Pre-payment statement when asked for the rollover benefits statement. Can the Lump Sum Pre-payment statement be relied upon as a substitute?

Thanks for sharing your thoughts.

Deb Rieniets

1 comment

Comments (1)

THE AUDITORS INSTITUTE

Feb 08, 2024

Hi Deb

My view is that a rollover benefit statement must be supplied to the new Fund.

For guidance from the ATO refer:

https://www.ato.gov.au/forms-and-instructions/rollover-benefits-statement-for-transactions-from-1-july-2017

As a result my view is that the Lump Sum Pre-payment statement cannot be relied upon as a substitute.

Thanks

The Auditors Institute