How is superannuation split in a divorce?

When a marriage or de facto relationship ends, dividing assets is one of the most important parts of the settlement process. An asset that is often overlooked is the division of superannuation. Superannuation (super) can often be one of the largest assets a couple holds and understanding how super is split during a divorce or separation is important for both parties to ensure a fair outcome.

Superannuation is money that is put aside by your employer over your working career as a long-term savings plan. It is designed to support you for any financial needs you may have in retirement. While you typically can’t access super until reaching preservation age, anywhere between 55-65 based on when you were born, it is still considered an asset in family law proceedings and can be split between separating partners.
Under the Family Law Act 1975, superannuation is treated as property, meaning it can be included in a property settlement and divided between both parties. However, unlike other assets such as cash or real estate, super remains in the superannuation system and is usually not immediately accessible.

The Family Court considers several factors when dividing superannuation, including:

• The total value of each party's superannuation
• The length of the marriage or de facto relationship
• The financial and non-financial contributions made by each party (e.g., income earned, homemaking, caregiving)
• The future needs of each party (E.g., health, age and earning capacity)
• Any previous agreements, including a binding financial agreement

The court aims to achieve a fair and equitable division of assets, including superannuation, based on the principles of justice and fairness.

While it is possible to reach an agreement without legal assistance, seeking legal advice is highly recommended to ensure that the process is handled correctly. A family lawyer can help you:

• Understand your entitlements to superannuation
• Negotiate the division of superannuation with your former partner
• Take the correct legal steps and prepare the necessary legal documents, including obtaining the appropriate court orders, consent orders or binding agreements
• Work with financial advisors to ensure a smooth transition of funds

If one partner has little or no superannuation, they may be entitled to a larger share of other assets (such as savings or property) to compensate for this imbalance. The court will assess the overall financial situation and aim for a fair division of all assets.

Yes, superannuation splitting orders can be made after a divorce is finalised, as long as a property settlement has not already been completed. However, it’s best to address superannuation at the same time as other assets to avoid complications later.
Superannuation is a significant asset in many relationships and must be carefully considered during divorce proceedings. Understanding how super is divided, the different methods available, and how the courts determine entitlements is key to achieving a fair and equitable outcome. Seeking legal and financial advice ensures that the process is handled correctly, helping both parties move forward with financial security.

For more family law advice like this, feel free to reach out to Genuine Legal for a consultation. Call us on (07) 2102 0641 if you need our assistance.