Does My Superannuation Form Part of a Property Settlement?

Outside of any property they own, superannuation is the largest asset most Australians now own. For that reason, the place of superannuation in a family law property settlement between two people whose relationship has ended is increasingly important. Under Australia’s Family Law Act 1975 (‘the Act’), superannuation is considered ‘property’ so that when a couple decides to separate or divorce, their superannuation interests are included in the overall property pool that is subject to division between the parties (but is treated differently to other non-super assets).
The inclusion of super within the property pool recognises its importance as an asset that contributes to a person’s financial future and security. Issues frequently arise where one half of the couple may have been the ‘breadwinner’, accumulating superannuation over many years while working, while the other partner spent years out of the workforce raising children and maintaining a household.
After the split, the domestic partner has legitimate concerns about how they will fund their lifestyle in retirement without super funds to call on.