In Australian family law, superannuation is treated as property for the purpose of dividing assets after separation. It differs from most assets because it is generally preserved until retirement, but it can still be valued, considered and, where appropriate, split between parties as part of a fair overall settlement.
Why Superannuation Matters
Superannuation can be one of the largest assets in a relationship, particularly where one party has been in paid employment for longer, earned a higher income, operated a business, or had employer contributions over many years.
It is also often overlooked because it feels distant. Unlike the house or savings account, superannuation may not help with immediate expenses. But that does not make it unimportant. A modest-looking superannuation imbalance today can become a significant retirement gap over time.
This is especially important where one party has taken time out of the paid workforce to care for children, support the other party’s career, or manage the household. Those contributions may have reduced that party’s own superannuation growth, even though they contributed substantially to the family as a whole.
How Superannuation Is Dealt With
Superannuation can be addressed in several ways, including:
- each party retaining their own superannuation, where that produces a fair overall result;
- one party receiving more non-superannuation assets to offset the other party’s higher superannuation;
- a formal superannuation splitting order, transferring part of one party’s superannuation interest to the other party’s fund; or
- a combination of these approaches.
Why “I Don’t Care About Super” Can Be Risky
People often say they do not care about superannuation because they are focused on immediate needs: housing, debt, children’s expenses and cashflow. Those concerns are real. But ignoring superannuation can distort the settlement.
For example, two parties may appear to be dividing the visible assets equally, while one retains a much stronger long-term financial position through superannuation. Conversely, a party may agree to give up a claim to superannuation without understanding its value, tax treatment, or future importance.
A proper settlement should consider both present financial needs and future financial security.
How Turini McKean Law Can Assist
Turini McKean Law assists clients to understand and deal with superannuation as part of their broader family law property settlement. This includes:
- identifying each party’s superannuation interests;
- obtaining and reviewing current superannuation values, including obtaining valuations if necessary;
- advising on specialised superannuation interests such as defined benefit schemes;
- advising on the intersection between military superannuation interests and associated disability pensions;
- considering whether a superannuation split is appropriate;
- advising on how superannuation affects the overall property division;
- preparing superannuation splitting clauses for consent orders where required;
- liaising with superannuation trustees and ensuring procedural requirements are met;
- considering whether an offset using other assets may be preferable; and
- explaining the practical effect of proposed arrangements in clear terms.
Superannuation should not be an afterthought. It is often central to achieving a fair, balanced and durable settlement.
A well-structured property settlement looks beyond what is immediately visible and considers the whole financial picture — including future security. That is where careful family law advice can make a significant difference.
If you would like legal advice about superannuation and your family law settlement, please contact us:
Email: info@turinimckeanlaw.com.au or
Phone: +61 2 61983384