Superannuation splits explained in plain English

When people separate, superannuation is often misunderstood. Many assume it is treated just like any other asset, or that it will automatically be “split down the middle”. Neither assumption is correct.

In family law property settlements, superannuation is dealt with differently to most other assets, and understanding how it works early can avoid costly mistakes later.

What is a superannuation split?

A superannuation split is a legal mechanism that allows part of one party’s superannuation interest to be allocated to the other party. Importantly, this does not mean the superannuation is paid out in cash.

Instead, the split creates a separate superannuation interest for the receiving party, usually within their own fund or as a separate account within the same fund. The funds generally remain preserved until a condition of release is met, such as retirement.

Is superannuation automatically split in a property settlement?

No. There is no automatic entitlement to a 50/50 superannuation split.

Superannuation forms part of the overall property pool and is considered alongside other assets such as real estate, savings, businesses and investments. The focus is on whether the overall division is just and equitable — not whether each individual asset is divided equally.

In some matters, parties agree not to split superannuation at all. In others, a split is essential to achieve a fair outcome, particularly where one party has accumulated significantly more super over the relationship.

How is a superannuation split calculated?

There is no fixed formula for calculating a superannuation split.

The Court (or the parties by agreement) considers factors such as:

• financial and non-financial contributions made during the relationship;

• future needs, including age, health and earning capacity; and

• how superannuation compares to the rest of the asset pool.

A split may be expressed as a percentage or as a fixed dollar amount, depending on the type of fund and the circumstances of the parties.

Are all superannuation funds treated the same?

No — and this is where many people encounter difficulty.

There are important differences between accumulation funds, defined benefit funds, self-managed superannuation funds, and overseas pension interests. Each is subject to different valuation methods and splitting rules.

If superannuation is not correctly identified or valued, it can result in delays, rejected court orders, or unintended financial outcomes.

How is a superannuation split formalised?

A superannuation split can only be implemented through:

• Consent Orders approved by the Court; or

• a Binding Financial Agreement that meets strict legal requirements.

Superannuation trustees must also be formally notified, and specific procedural steps must be followed before a split becomes operative.

Why early advice about superannuation matters

Superannuation is often one of the most valuable assets in a long relationship, yet it is frequently overlooked until late in negotiations. Identifying super interests early, obtaining accurate valuations, and structuring a split carefully can make a significant difference to the final outcome.

Understanding superannuation splits in plain English is an important first step in navigating property settlements with clarity and confidence.