Superannuation Information Kit

Understanding Superannuation Splitting

Since 2002, Australian family law has allowed superannuation to be split between separating couples as part of property settlements. The Family Law Act 1975 Part VIIIB provides the framework, and the Family Law (Superannuation) Regulations 2001 set out the procedural requirements.

Superannuation is treated as property in family law proceedings. Both parties must disclose all superannuation interests as part of their financial disclosure obligations. Super interests are included in the overall property pool and considered when the court determines a just and equitable division under Section 79.

Key concepts

• Member spouse — the party whose superannuation is being split; the person who holds the super account that will be divided.
• Non-member spouse — the party who will receive a share of the other party's superannuation as part of the property settlement.
• Splitting order — a court order directing the super fund trustee to allocate a specified amount or percentage to the non-member spouse.
• Flagging order — a temporary order that prevents the super fund from paying out any benefits until the property settlement is finalised.

How super splitting works

A superannuation splitting order directs the trustee of a super fund to transfer a specified amount (or percentage) from one party's account to the other party's account. The funds stay within the superannuation system — they are not paid out as cash. The receiving party can choose to have the split amount transferred to their existing super fund or a new fund.

Flagging Orders vs Splitting Orders

There are two types of superannuation orders the court can make. Understanding the difference is important for knowing what to apply for and when.

Flagging orders

A flagging order is a temporary protective measure that prevents the super fund from paying out any benefits until further court order. It preserves the super interest while the property settlement is being negotiated or litigated.

• Used when one party may retire or withdraw super before settlement.
• The flag remains until lifted by the court.
• Does not determine the final split — just freezes the account.
• Can be sought on an urgent or interim basis.

Splitting orders

A splitting order is the final order that actually divides the superannuation. It directs the trustee to allocate a specified amount or percentage to the non-member spouse's nominated super fund.

• Made as part of the final property settlement.
• Can specify a dollar amount or percentage.
• The trustee processes the split within a set timeframe.
• Funds remain in super until the receiving party meets a condition of release.

The Superannuation Information Kit

The Superannuation Information Kit is a set of documents provided by the super fund that contains the information needed to value and split a superannuation interest. Obtaining this information is a mandatory step before the court can make splitting orders.

What the kit contains

• Declaration by trustee — a formal statement from the trustee about the member's super interest, including the type of fund, current balance, and any benefits in payment.
• Fund information — details about the fund's rules regarding splitting, any fees the trustee will charge for implementing a splitting order, and the fund's contact details.
• Valuation information — for accumulation funds: the current account balance. For defined benefit funds: the methodology for calculating the eligible superannuation interest, which may require actuarial valuation.
• Splitting procedures — the fund's specific requirements for processing a splitting order, including what documentation they need and estimated processing timeframes.

Valuing Superannuation

How super is valued depends on the type of fund. Getting the valuation right is critical — an incorrect valuation leads to an unfair property split.

Accumulation funds

Most Australians have accumulation super (industry funds, retail funds, SMSFs). The value is straightforward — it is the current account balance at the relevant date.

Examples include AustralianSuper, Hostplus, REST, Sunsuper, Colonial First State, and self-managed super funds (SMSFs).

Defined benefit funds

Some government and corporate employees have defined benefit super. The value is not the account balance but a calculated entitlement based on salary, years of service, and the fund's formula. Valuing these requires actuarial evidence.

Examples include the Commonwealth Super Scheme (CSS), Public Sector Super (PSS), military super (MSBS/ADF Super), and some state government schemes.

Step-by-Step Super Splitting Process

The process from initial disclosure to receiving your split super follows a defined path.

Step 1 — Identify all super interests

Both parties must disclose all superannuation interests — including funds they may have forgotten about (lost super). Search the ATO's myGov portal to find any unclaimed or lost super accounts. Failing to disclose super is a breach of duty and can result in the settlement being overturned.

Step 2 — Request the superannuation information kit

Write to the trustee of each relevant super fund requesting the information kit under the Family Law (Superannuation) Regulations. Include the member's name, date of birth, member number, and a copy of the court file (or confirmation proceedings are on foot). The fund must respond within 28 days.

Step 3 — Obtain valuations

For accumulation funds, the current balance from the information kit is the valuation. For defined benefit funds, you may need to engage an actuary to calculate the present value. Actuarial reports typically cost $500–$2,000 depending on complexity.

Step 4 — Negotiate or litigate the split

Negotiate with the other party on how super should be divided as part of the overall property settlement. If agreement is reached, include the super split in consent orders. If not, the court will determine the split at the final hearing. The split may be expressed as a dollar amount or percentage.

Step 5 — Draft and file orders

The splitting order must comply with the specific requirements of the Family Law (Superannuation) Regulations. It must identify the fund, the member, the amount or percentage to be split, and the receiving fund. Use the fund's preferred wording — many funds provide template clauses.

Step 6 — Serve orders on the trustee

Once the court makes the splitting order, serve a sealed copy on the super fund trustee. The trustee will then process the split within the timeframe specified in their information kit (usually 28–90 days). You will also need to nominate a receiving super fund for the split amount.

Costs and Timeline

Super splitting involves costs from the super fund (trustee fees) and potentially from valuers. Understanding these upfront helps you plan.

Timeline

• Information kit: 28 days — from request to receipt. Some funds are faster.
• Processing split: 28–90 days — from service of the sealed court order on the trustee to completion of the transfer.
• Total end-to-end: 3–12 months — from initial request to funds arriving in the receiving super account, depending on whether the split is by consent or contested.

Common Mistakes to Avoid

Valuation errors

• Using outdated balances — request current figures close to the hearing.
• Ignoring defined benefit complexity — these require actuarial valuation.
• Forgetting insurance components — life and TPD insurance within super has value.
• Not searching for lost super — use the ATO's myGov service.

Procedural errors

• Not getting the information kit — the court requires fund-specific information.
• Incorrect order drafting — orders must comply with the Family Law (Superannuation) Regulations.
• Not serving orders on the trustee — the split does not happen until orders are served.
• Not nominating a receiving fund — you must tell the trustee where to send the money.

Common questions