Superannuation splitting in amica

What Is Superannuation?

Superannuation, or “super”, is Australia’s retirement savings system. Employers are generally required to make contributions into a super fund on behalf of their employees, helping individuals build savings for retirement over time. Although superannuation is usually inaccessible until retirement, it is treated as property under Australian family law and can be divided between separating parties after separation.

Understanding Different Types of Super

Accumulation Funds

Accumulation funds are the most common type of super fund. The balance grows over time through employer contributions, personal contributions, and investment earnings, less fees and costs. amica can only be used to split an accumulation type fund where the withdrawal benefit is greater than $10,000. Some accumulation funds may also include partially vested interests, where part of the entitlement only becomes available once certain conditions are met.

Defined Benefit Funds

Defined benefit funds calculate retirement benefits using a set formula, often based on salary and years of service, rather than investment performance. These funds are commonly associated with government and older corporate schemes and are generally closed to new members.

Self-Managed Super Funds (SMSFs)

A Self-Managed Super Fund (SMSF) is a private super fund managed by its members, who are usually also the trustees of the fund. SMSFs provide greater control over investment decisions but can involve additional legal and financial complexity during separation.

Account-Based Pensions

An account-based pension (sometimes called an 'allocated pension') is a retirement income stream paid from a person’s superannuation after retirement or another condition of release has been met. The member receives regular payments while the remaining balance stays invested. These interests may require specialised consideration during property settlements.

How amica Can Help with Superannuation Splitting

Superannuation can form a significant part of a couple’s overall assets after separation. Unlike cash or other assets, super is held within a regulated super fund and is generally transferred between funds rather than paid directly in cash.

amica allows eligible users to include superannuation as part of their overall financial settlement. amica guides users through the process of splitting super, provides practical information about the legal requirements, and generates the documents needed for an Application for Consent Orders.

Importantly, amica also assists users to meet the procedural fairness requirements involved in superannuation splitting. Under Australian family law, trustees of a superannuation fund must generally be given procedural fairness by receiving notice of the proposed orders and supporting documentation before orders are made. amica helps streamline this process by generating the relevant documents and guiding users through the required steps.

Users can agree to transfer part of one party’s superannuation entitlement to the other party as part of their overall financial settlement, including using superannuation to offset part of a cash adjustment. It is important to understand that this does not involve a direct cash payment, but rather the transfer of superannuation benefits from one superannuation fund to another.

When amica May Not Be Suitable

amica can currently only be used to split one accumulation type superannuation fund with a withdrawal benefit greater than $10,000.

amica cannot currently be used to split superannuation for these fund types:

• Defined benefit funds
• Account-based pensions
• SMSFs

Need more information?

If you are unsure about your type of superannuation fund or whether amica is suitable for your circumstances, you can contact the free legal help service in your state or territory. Details are available on our Help and Support page. You can also visit the Attorney-General's Department's Superannuation splitting webpage for more information about the superannuation splitting process, including the procedural requirements and the types of superannuation interests that can be split.

About amica

amica is a smart and simple online tool to guide separating couples through parenting, property and money decisions in an amicable way. It was designed by family lawyers to help guide separating couples through the process in an accurate, calm and fair way. It uses artificial intelligence which takes into account the length of the relationship, assets and earnings, age and health needs, contributions to the relationship, arrangements for taking care of children and future needs. It makes practical suggestions for parenting arrangements that suit your family situation. At the end of the process you can download a document that sets out what you’ve agreed.

Go to amica.gov.au