Divorce can reshape almost every part of a woman’s financial life including earnings, living arrangements, savings, and long-term plans. In Australia, one area that often gets overlooked during separation is superannuation. Because super is usually held in individual accounts, many women assume they have no claim to their former partner’s balance, or don’t realise how important super can be to their long-term security.
In reality, superannuation is treated as property during divorce and can be divided between partners. This process is known as super splitting.
Understanding your rights, how super is valued, and what steps are involved can help you make informed decisions during a time that already feels emotionally and financially complex.
Why Superannuation Matters So Much for Women
Women’s super balances are typically lower due to career breaks, part-time work, and caregiving responsibilities. During divorce, this gap can become even more visible, and more important. Super splitting exists to help create a fairer financial foundation for both partners, especially when one person earned less or stepped away from work to care for children.
The Australian Government formally recognises super as part of a couple’s property pool through the Family Law Act 1975. This means it can be considered alongside assets like the family home, savings, and investments.
More information on how super is treated in family law can be found here.
What Is Super Splitting?
Super splitting is the process of dividing superannuation between separating partners. This doesn’t turn super into cash, instead, a portion of one partner’s super is transferred into the other partner’s super account.
The key points to understand are:
- The split is not taxable at the time of transfer.
- The receiving partner cannot access the funds until they meet the usual super release conditions.
- A super split doesn’t affect the total property pool, it simply redistributes it.
This system is designed to help both people move forward with a more balanced retirement outlook, especially if one person accumulated most of the super during the relationship.
How Super Is Valued During Divorce
Super balances can be straightforward or complex depending on the fund type.
For most people with standard accumulation funds (the type most Australians have), valuation is simple: it’s usually based on the balance at a particular point in time.
For defined benefit funds (common among public sector employees), a calculated value is required.
You can request information directly from a super fund using a government-approved Form 6 declaration and, if required, an Application for Superannuation Information. These forms ensure funds supply the correct details to support a fair settlement. Find out more here.
Ways to Split Super: Agreement or Court Order
There are two pathways to splitting superannuation during divorce.
1. Super Splitting by Agreement
A couple can reach a mutual agreement about how they want to divide their super. This agreement must be documented and formalised to be legally binding. Two options are available:
- Binding Financial Agreement
- Consent Orders
Both options involve legal requirements, including each partner receiving independent legal advice for a Binding Financial Agreement.
Guidance on these processes is available here.
2. Super Splitting by Court Order
If an agreement isn’t possible, the court can make an order that determines how super is divided. Courts consider factors such as contributions (financial and non-financial), earning capacity, care of children, and future needs.
What Super Splitting Does Not Do
Super splitting doesn’t automatically:
- Provide immediate cash
- Allow early access to super
- Change the tax treatment of your account
- Alter your insurance unless your fund requires new underwriting
This means a super split supports long-term security, not short-term cashflow. Understanding this helps you plan for both immediate needs during separation and your future financial wellbeing.
The Role of Non-Financial Contributions
One important part of family law is the recognition of non-financial contributions, including: caregiving, running the household, raising children, and supporting a partner’s career. These contributions are considered when determining how property, including super, is divided.
This is particularly relevant for women who may have taken extended time away from work. Super splitting acknowledges the value of this unpaid labour and helps ensure a fairer settlement.
Key Steps in the Super Splitting Process
Everyone’s situation is different, but these are the typical stages in a super split:
1. Gather Information About Both Partners’ Super
This may involve requesting balances from super funds using the official forms noted earlier. Many people are surprised to discover they or their partner have multiple accounts.
2. Agree on a Valuation Date
This is usually the separation date, but couples can agree on a different date depending on their circumstances.
3. Decide How Assets Will Be Divided
Super sits alongside property, savings and other financial assets. A balanced settlement considers the full picture.
4. Formalise the Agreement or Court Order
An informal agreement isn’t enough. The division must be documented legally to ensure the super fund can act on it.
5. The Fund Implements the Split
Once the fund receives the sealed consent orders or Binding Financial Agreement, they transfer the agreed amount into the receiving partner’s super account.
What to Consider Before Negotiating a Super Split
Every separation is unique, but here are some practical questions you may find helpful:
- Do you know the total combined super balance?
People often underestimate how large a part of the property pool super can be. - Have you checked for insurance inside each fund?
Closing a super account might cancel valuable life or disability cover. - Do you understand how different fund types are valued?
Defined benefit funds may require additional calculations. - How will caregiving arrangements affect future earning capacity?
Super splitting is partly about balancing future needs as well as past contributions. - Are there multiple super accounts that need to be consolidated later?
Once the split is complete, checking for duplicate accounts can help reduce fees.
Building a More Secure Future After Separation
A divorce is not simply the end of a relationship, it’s the beginning of a new financial chapter. Super splitting exists to support fairness and help both partners move forward with stability, especially when one person carried most of the unpaid or lower-paid responsibilities within the relationship.
Understanding the rules, knowing your rights and feeling confident in the process can make a significant difference to your long-term financial wellbeing. While the immediate period after separation can feel overwhelming, superannuation remains a powerful resource that can support your independence and security over the decades ahead.
If you have any questions, our team is happy to help answer them. You can download the eairwoman app if you want to start taking control of your financial future.
Disclaimer: Information in this article is accurate as of the date of publication. Information within the article is general only, not financial advice. We urge you to seek independence advice from a licenced Financial Advisor before making any investment or financial decisions.
