Superannuation is often the second or third largest asset in a marriage. And it's one of the most misunderstood in separation.
A few things worth knowing.
Super is included in the family law asset pool. Despite being held in separate funds, superannuation accumulated during a relationship is treated as a joint asset for the purposes of a property settlement. This is true even if one party didn't work — contributions made by the working spouse are assessable.
Super can be split — but not cashed out. A superannuation splitting order transfers a portion of one party's super entitlement into the other party's fund. It doesn't become accessible cash until retirement age. This affects how it should be valued in negotiations, particularly where one party is much closer to that point than the other.
Defined benefit funds are more complex. If one party has a government or defined benefit super fund, valuation requires specific methodology and often an actuary's input. These funds can't simply be looked at on a statement balance.
Failing to address super in a settlement is a common and costly mistake. We regularly see clients who finalised a separation years ago, agreed on property and left super 'to sort out later', and are now unable to revisit it without significant legal cost — or at all.
A properly structured settlement considers super, property, and future income together. That holistic picture is where the real negotiating leverage often lies.
