For many separating couples — especially where one partner took years out of the workforce to raise children — superannuation is the second-largest asset after the home. Australian family law treats super as property that can be split, and overlooking it is one of the most expensive mistakes in any settlement.
Is Superannuation Included in a Property Settlement?
Yes. Superannuation forms part of the asset pool alongside the home, savings and other property. It is treated as its own class of asset because it is normally locked away until retirement, but it is valued and divided like the rest of the pool as part of the overall property settlement.
How Does a Super Split Actually Work?
A splitting order (in consent orders or court orders) or a binding financial agreement directs a super fund to transfer part of one spouse's superannuation interest into a fund in the other spouse's name. Key points:
- The transferred amount stays inside the superannuation system — it is not paid out as cash, and normal preservation rules apply until retirement
- The fund trustee must be given procedural fairness — the proposed orders are sent to the fund before they are made
- Any percentage or amount can be split; there is no automatic 50/50
- Defined benefit interests and self-managed funds require specialist valuation
How Do I Find Out What My Spouse Has in Super?
Both parties owe full and frank financial disclosure. In addition, the family law courts can obtain superannuation information held by the ATO for a party to proceedings — making hidden super much harder to hide than it once was.
Do We Have to Split Super?
No. Couples often balance assets instead — for example, one keeps more of the home equity and the other keeps their super. What matters is that super is counted in the pool, whatever the final structure. Any split or offset should be recorded in consent orders or a BFA to be effective and binding on the fund.
De Facto Couples Too?
Yes — superannuation splitting applies to married and de facto couples alike (including same-sex couples), with the usual time limits applying to when claims must be made.
Make sure super is counted in your settlement.
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General information only, not legal or financial advice.
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