Superannuation
Splitting
Superannuation is often the largest single asset in a family — and it can be divided as part of any property settlement. We manage the process end to end.
Superannuation is treated as property under the Family Law Act 1975 and can be divided between separating couples — married or de facto. Unlike other assets, superannuation cannot simply be transferred as cash. It must be split through a formal superannuation splitting order or agreement that is served on the fund trustee and complies with the Superannuation Industry (Supervision) Act 1993. Purcell and Purcell Pty Ltd handles the full process, ensuring the split is properly documented and implemented.
Superannuation also forms part of your financial disclosure obligations — you must provide member statements for every fund you hold. See our guide to financial disclosure obligations in family law.
Superannuation splitting services
A superannuation splitting order is made by the court — either by consent or after a hearing — and directs the fund trustee to split the interest. We prepare consent order applications that include the correct superannuation splitting provisions, and ensure all technical requirements are met before filing.
Parties can also split superannuation through a superannuation agreement, which is similar to a binding financial agreement. Both parties must receive independent legal advice. The agreement must be signed and served on the fund trustee to take effect. We draft and advise on superannuation agreements as part of broader property settlements.
The value of a superannuation interest depends on the type of fund — accumulation funds are valued by account balance, while defined benefit funds require actuarial valuation. We advise on how to value each party's interest correctly and obtain the necessary information from fund trustees.
Splitting superannuation held in an SMSF requires additional steps — including potential restructuring of the fund and trustee obligations. We work with your accountant and financial adviser to ensure the SMSF split is handled correctly and complies with both family law and superannuation legislation.
Superannuation splitting is not always the right approach. In some settlements, it may be more practical to offset the superannuation against other assets — for example, one party retains the family home and the other retains a larger superannuation balance. We advise on the tax and practical implications of each approach.
Once a splitting order or agreement is made, the order or agreement must be served on the fund trustee within the required timeframe. The trustee then implements the split. We manage this process and follow up with the fund to ensure the split is implemented correctly and within the required timeframes.
Every asset on the table.
Including super.
Many separating couples overlook superannuation — particularly where one partner has significantly more super than the other. In long relationships, superannuation can represent hundreds of thousands of dollars. Leaving it out of a settlement can result in a significantly unfair outcome.
We ensure superannuation is properly considered in every property settlement we handle. We advise on the strategic question — split or offset — and manage the technical steps to ensure the split is properly implemented.
For settlements involving SMSFs or defined benefit schemes, we work closely with your accountant and financial adviser to ensure the outcome is both legally correct and financially sensible.
Superannuation splitting FAQs
Yes. Superannuation is treated as property under the Family Law Act 1975 and can be divided between both married and de facto couples on separation. It must be split through a formal court order or superannuation agreement — it cannot simply be transferred as cash. The split creates a new interest for the receiving party in the same or a different fund.
The receiving party can only access the superannuation when they meet a condition of release under the Superannuation Industry (Supervision) Act 1993 — such as reaching preservation age and retiring, or reaching age 65. The split transfers the entitlement, but does not allow early access. The money remains preserved in superannuation and is subject to the same access rules as any other superannuation interest.
For accumulation funds (which most people have), the value is the account balance as at a particular date. For defined benefit funds — such as some government and older industry funds — the value must be calculated actuarially using the gross value method, which takes into account the member's entitlement at retirement age. The fund trustee is required to provide this information on request.
This depends on the specific circumstances — the ages of the parties, their current superannuation balances, the value of other assets (particularly the family home), and their respective financial positions. Where one party is closer to preservation age, retaining a larger super balance may be more immediately valuable. Where there are significant non-super assets, offsetting may be simpler and more practical. We advise on the best approach for your specific situation.
Splitting superannuation in an SMSF is more complex than in a retail or industry fund. The receiving party may need to roll their entitlement out to a new or existing fund, or — if they remain a trustee — the SMSF must be restructured. There are also trustee obligations and potential tax implications. We work with your accountant and the SMSF trustee to ensure the split is implemented correctly under both family law and superannuation legislation.
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