Splitting super assets after a divorce is getting easier and fairer

Superannuation funds are being encouraged to adopt a universal process for splitting couples’ superannuation assets after a divorce. The streamlined process is called Simpler Super Splitting and uses a simplified form for court orders to be used across the superannuation and legal system, including courts.

HESTA is the first super fund to adopt the process as standard, with a recent pilot with the Women’s Legal Service Victoria (WLSV), Link Group and Australian Family Lawyers in a HESTA case involving a couple who were both with the fund.

Currently the process for splitting super varies between funds, so it’s tricky to move on in the process without legal help. HESTA’s chief executive Debby Blakey is encouraging other funds to follow their lead to ensure equity in the instance of a divorce.

Blakey said, “Dividing super assets to date has been an unnecessarily long and complex process, often requiring expensive legal advice that can unfortunately result in many women, especially those from low-income households or who are experiencing disadvantage, walking away from their fair share of super assets.”

“Given super is often the largest or only asset in the relationship for low-income families, it means many women are potentially losing their only income in retirement beyond the Age Pension.”

For many women, superannuation may be the only significant asset they hold, according to WLSV research. This contributes to poor economic outcomes, particularly for women aged over 55, who are the fastest-growing group of homeless people in Australia.

A new law also enables lawyers involved in family law proceedings to access information from the Australian Tax Office about a former partner’s superannuation, upon application.