How Much Super do you Lose in a Divorce?

Superannuation is often one of the largest assets considered during a property settlement, leading many people to wonder whether they will lose part of their retirement savings after separation or divorce. Under Australian family law, superannuation is treated as part of the overall property pool and may be divided between the parties depending on their individual circumstances. In this guide, the team at O’Sullivan Davies explains how superannuation is considered during a property settlement and the factors that may influence whether a superannuation split is appropriate.

Is Superannuation Split in a Divorce?

There is no set amount of superannuation that a person will lose following a divorce. In some cases, you may actually receive a greater share of superannuation depending on the composition of the overall property pool and your individual circumstances.

In family law property settlements, regardless of whether you were married or not, all of yours and your ex-spouse’s current assets, liabilities and financial resources, including superannuation, form part of the total estate to be divided between the two of you.

Assets, Liabilities and Financial Resources

To understand how superannuation is treated, it is important to understand what forms part of the overall property pool. This generally includes the parties’ assets, liabilities and financial resources.

‘Assets’ mean items of property and include things like real estate, cars, personal belongings, shares, and any entitlements in trusts and other corporate entities.

‘Liabilities’ mean any debts and include bank loans, personal loans, credit cards and even HECS debt.

‘Financial resources’ mean things that can be used for the purpose of generating income such as future pension entitlements, anticipated inheritance and the capacity to borrow money. These are not often brought to account in the same way as assets or liabilities.

How the Court Assesses Superannuation

Superannuation forms part of what the Court considers the parties’ property and its value is therefore included in the total figure to be divided between the parties. It’s common for one party to ‘roll over’ some of their superannuation entitlements to the other party as part of a property settlement.

If you are looking to incorporate a superannuation split into your property settlement, you should seek legal advice to ensure its terms are compliant with the very technical provisions governing superannuation splits.

Speak with an Experienced Divorce Lawyer

If you have questions about how superannuation may be treated in your property settlement or need advice about your financial entitlements following separation, the team at O’Sullivan Davies can help. Contact our experienced divorce lawyers today for practical advice and support tailored to your circumstances. Contact our experienced divorce lawyers today for practical advice and support tailored to your circumstances.