A defined benefit scheme is a type of super fund where the retirement payout is based on a formula, typically involving the member’s salary, years of service, and a benefit multiple. Unlike accumulation funds, the value doesn’t fluctuate with market performance and isn’t always clear on paper. Examples of defined benefit schemes in Australia include PSS, CSS, and some employer-provided funds for government employees, defence personnel, and large corporations. It is important to understand that Defined Benefit Superannuation Schemes are no longer available to new members. Although Defined benefit Superannuation Schemes are mostly closed to new members, Industry SuperFunds are very much open and they provide excellent benefits. As well the great tax advantages that can come with retirement income streams

Yes, under the Family Law Act 1975, superannuation is treated as property and can be split between separating spouses or partners. This applies whether you're married or in a de facto relationship. However, defined benefit schemes can be difficult to value accurately because the final payout often depends on future salary and service, not a current account balance.

Defined benefit superannuation schemes add an extra layer of complexity to divorce settlements. While they can be split like other super funds, their unique structure requires careful valuation and consideration. Seeking both legal and financial guidance can help ensure a fair outcome and protect your future financial security.