Superannuation After Divorce or Separation: A Clear Guide for Women in Business

Divorce or separation is one of life’s major turning points, both personally and financially. For self-employed women, the financial impact often extends beyond the family home. Your superannuation is an important part of your long-term security and forms a key component of the asset settlement process.

At MBA Financial Strategists, we understand that separating personal and business finances can feel complex, particularly when you are caring for family and running a business. This guide explains how separation and superannuation work under Australian law, what steps are involved, and how thoughtful financial planning can help you move forward with confidence.

Superannuation Is Considered Property

Under Australian family law, superannuation is treated as property when assets are divided after divorce or separation. It forms part of the total asset pool, which may include property, business holdings and investments. The goal is to achieve a fair and equitable division.

When determining how superannuation will be split, the court considers:

• The length of the relationship
• Financial and non-financial contributions, such as managing a business, maintaining the home or caring for children
• Age, health and earning potential
• Dependants and future financial needs

Superannuation cannot be accessed as cash unless a condition of release is met, such as reaching preservation age or retiring. Any portion transferred to the other party remains within the superannuation system.

How Superannuation Can Be Split

There are several ways to formalise a superannuation split in Australia. The right option depends on your circumstances and the level of agreement between both parties.

1. Binding Financial Agreement (BFA)

A BFA is a private legal agreement that sets out how superannuation will be divided. It must be prepared by a lawyer, and each party must obtain independent legal advice before it becomes binding.

2. Consent Orders

If you and your former partner agree on how assets will be divided, you can apply for Consent Orders through the Federal Circuit and Family Court of Australia. Once approved, these orders have the same legal effect as a court ruling and provide clear guidance for implementing the superannuation split.

3. Court Orders

If agreement is not possible, the court can determine how superannuation will be divided as part of the property settlement. This process involves the full disclosure of financial information and the formal valuation of each super fund.

Valuing Superannuation Interests

Not all super funds are structured the same way, so accurate valuation is essential.

• Accumulation funds are generally valued at their current account balance.
• Defined benefit funds or self-managed superannuation funds (SMSFs) often require expert valuation due to their complexity.

For business owners, an SMSF might hold commercial property or company shares linked to the business. These assets must be carefully assessed to ensure compliance with superannuation and tax law and to protect the integrity of the fund during the settlement process. Obtaining advice in this area is critical. It’s very important to involve a lawyer, accountant and financial adviser.

For more detail, the Attorney-General’s Department provides guidance on how superannuation splitting is managed under family law.

The Process of Splitting Super

Splitting superannuation follows a clear and structured process:

1. Request Information – You can request details of your former partner’s super using approved forms from the Family Court of Australia or the Australian Taxation Office (ATO).
2. Obtain a Valuation – The fund or a qualified specialist provides a valuation of the super interest.
3. Negotiate or Seek Orders – Through legal or mediated discussions, you decide how the super will be divided.
4. Notify the Trustee – The super fund must be notified of the proposed split and provided with the final agreement or court order before it takes effect.
5. Implementation – The trustee transfers the agreed portion into a new or existing super account for the receiving party.

When multiple super funds or SMSFs are involved, this process may take time. Coordinating legal, accounting and financial advice helps ensure accuracy and prevents unnecessary delays.

Key Considerations for Business Owners

For women who own or manage businesses, superannuation decisions are often linked to broader financial planning.

Self-Managed Super Funds and Business Property

Many self-employed professionals use SMSFs to hold business premises or other commercial property. In a divorce, these assets need to be valued carefully and managed in line with Australian superannuation regulations. Working with a financial adviser and accountant helps maintain compliance and protect business interests.

Taxation and Structuring

Superannuation splitting itself is generally tax-neutral, but related asset transfers or changes to business structures can create capital gains tax (CGT) or stamp duty implications. Coordinated advice helps manage these outcomes and avoid unnecessary costs.

Rebuilding Financial Security

After divorce, reviewing your financial position can restore clarity and control. Consider:

• Reviewing contribution strategies such as salary sacrifice, concessional and non-concessional contributions
• Checking insurance cover, including key person or income protection
• Updating estate and succession plans
• Re-aligning investments with your goals and risk tolerance

This is an opportunity to strengthen your financial foundations and align your plans with what matters most to you and your family.

Empowerment Through Financial Clarity

Divorce or separation brings significant change but also creates the chance to reshape your financial future. With informed advice, your divorce or separation and superannuation strategy can be adjusted to support the next stage of your life, helping you protect what you have built and plan with confidence.

Financial advisers such as Laura Drost at MBA Financial Strategists specialise in supporting women in business through major financial transitions. Our role is to simplify complex decisions, coordinate professional advice and provide strategies that give you clarity and control.

If you would like to better understand your superannuation or broader financial position after divorce or separation, contact MBA Financial Strategists for a confidential discussion.

GENERAL ADVICE WARNING

MBA Financial Strategists (ABN 13 008 285 756) and Laura Drost are authorised representatives and credit representatives of Akumin Financial Planning Pty Limited ABN 89 051 208 327, Australian Financial Services Licence and Australian Credit Licence No 232 706.

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.