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Super Splits Simplified: What You Need to Know When Dividing Super in a Separation
Superannuation is often one of the biggest assets in a property settlement — but it’s also one of the most misunderstood. Many clients are surprised to learn that splitting super isn’t as simple as agreeing on a number. There are specific rules, legal requirements, valuation processes, and strict timelines that must be followed before a court will approve the split.
At ALA Law, we take care of all the complex steps for you. Here’s what you need to know so the process feels clear, transparent, and stress-free.
1. First, We Identify Exactly What Kind of Super Fund You Have
Different types of super funds follow different rules. This affects how your super is valued and how it can legally be split.
You may have:
- an industry or retail super fund
- a Self-Managed Super Fund (SMSF)
- a defined benefit fund
- a Commonwealth or government scheme
- another specialist fund type
To work this out, we’ll ask you for your latest super statements and (if you have an SMSF) the trust deed and tax returns. This ensures the split is done correctly from the start.
2. Your Super Needs to Be Properly Valued
Superannuation must be valued before it can be split — and each fund has its own process.
- Retail & Industry Funds – we request a valuation directly from the fund, using a Form 6. This valuation usually expires after 90 days, so timing matters.
- Defined Benefit Funds – these are more complex. We obtain the fund information first, then arrange for a specialist valuer to assess the true value of the entitlement. The figure on your annual statement is not the actual legal value used in a split.
- SMSFs – if your SMSF holds property, shares, units or other non-cash assets, an independent valuation is required. We also review the SMSF trust deed and tax records to ensure everything is accurate and compliant.
This valuation step is essential — without it, the Court cannot approve the split.
3. We Help You Choose the Right Type of Split
A super split can be structured in different ways. Each option has a different legal meaning:
- Base amount – a set dollar figure that moves up or down depending on the fund’s performance
- Fixed/set amount – a dollar amount that does not change
- Percentage – a share of the super balance at the time the split takes effect
Choosing the wrong option can result in an unfair outcome. We will advise you on the best and safest option for your situation.
4. Your Orders Must Be Drafted Exactly Right
Superannuation splitting orders must comply with strict regulations. We prepare the court documents using the correct legal wording so your split is enforceable and accepted by the trustee.
For SMSFs especially, the orders must also deal with:
✔ changes to trustee/director roles
✔ allocation of liabilities or tax issues
✔ ensuring clarity so the ATO and auditor can implement the split smoothly
A minor drafting error can cause long delays — which is why this step must be done with precision.
5. The Super Fund Must Be Notified Before the Court Will Approve the Orders
This is a legal requirement.
We must:
- send the proposed orders to the super fund
- wait 28 days or receive written confirmation that the fund has no objection
- only then can the court make the final orders
This ensures the trustee has checked the wording and can implement the split without issues.
The Bottom Line
Dividing superannuation is not something you should navigate alone. ALA Law ensures:
- your fund is correctly identified
- your super is properly valued
- your orders are drafted accurately
- the trustee is notified correctly
- your split is legally compliant and fully enforceable
With the right process, superannuation splitting becomes smooth, transparent and stress-free — giving you confidence that your financial settlement is fair and secure.