Is the super fund she wants to cash out of an SMSF or a commercial/industry fund - sounds like an SMSF?
Is she of the right age to be able to cash out? Why would she cash out of a 0% or 15% taxed super account (depending on whether she is fully retired) to earn interest in a fully taxed environment?
Are you suggesting you don't want to give her 50% of the value of the house because you personally paid the mortgage out of your own super fund?
Sounds as if the threat to sell the house is a retaliatory action - why? The super in your account is only yours, the super in her account is only hers. Are you saying you cant live on the combined income of the combined super account (if, in fact it is combined?)
Also sounds like, dependent on the above questions, that your wife doesn't like the way you are managing the super fund and so wants to pull out and just put it somewhere simple, like an interest account. She can do that's, of course, as long as she follows the lump sum rules.
Be very careful, the discussion on the super account and the house have to be completely separate, they have nothing to do with each other. Your inference that you should own more of the house because you paid the mortgage wont actually hold much water (think sole bread winner arguing the same in a divorce settlement). Unless there is an actual reason to do otherwise, any court will simply split the house 50/50.
FMJ is spot on: a very complex area and your best bet is to come to an agreement with your wife. Anything else will cost you lots in legal fees.
