Super Split

Something you might not be aware of is that since 2002, your superannuation account has been considered as property than can be split in the event of a divorce, just like a home or savings.

However, there are a few differences in how super is split.

Since super can be one of the largest and most important assets you own, and because the size of your super can be impacted by both your gender and your career, super is able to be split in the event of a relationship breaking down. This ensures that even someone who has entirely relied on their partner for financial support still has adequate retirement savings.

How super is split

Super can be split not only in when a married couple divorces, but also when a de facto relationship ends. This can be accomplished either through mutual agreement of the two parties, or through a court order. However, a super can’t be split if it holds less than $5,000.

When super is split between ex partners, it is not paid out. Instead, the split portion is treated as either a payment split or an interest split. A payment split means that the split super account is kept intact but will pay out the determined proportion to each partner upon them individually reaching a condition for release, like retiring. An interest split is different and operates more like a rollover. If you separate from your partner, and an agreement has been reached that will allocate you a portion of their super, then that portion will be transferred to a super fund you nominate. In both cases, the super will stay locked away until you and your ex-partner individually reach a condition of release.

There is no need to split super accounts 50/50; the exact proportion depends on the circumstances of the case and what agreement can be reached. Factors that should be considered include:

  • The size of the super accounts
  • The types of super account held
  • The retirement needs of both parties
  • If there are children
  • How long until the super can be accessed
  • The split of other joint assets
  • Any tax implications

You’re entitled to information about your partner’s super

You can request information on both your own and your partner’s super accounts from the trustee of each super fund, though you may be charged for it. The trustee will provide information on the value and status of the super fund, any applicable fees and if withdrawals have been made. They are legally prohibited from either notifying the fund member of the request for information, or to give out the address of the member.

Because of both the financial and emotional complexities of splitting super, it is important that you seek out independent financial and legal advice. The valuation of the super funds in question must be done in accordance with the Family Law (Superannuation) Regulations of 2001 and goes beyond the information included in an annual statement.

You can read more about super and compare super funds here.

Compare Superannuation with Canstar

If you’re comparing Superannuation funds, the comparison table below displays some of the products currently available on Canstar’s database for Australians aged 30-39 with a balance of up to $55,000, sorted by Star Rating (highest to lowest), followed by company name (alphabetical). Use Canstar’s superannuation comparison selector to view a wider range of super funds.

Fee, performance and asset allocation information shown in the table above have been determined according to the investment profile in the Canstar Superannuation Star Ratings methodology that matches the age group you selected.

To view the past performance of all super funds, rated by Canstar, use our comparison tool:

Share this article