Expert Advice & Evidence

Independent Actuarial Valuations of

Superannuation Interests for Family Law Matters

Superannuation is often one of the most significant assets to be considered when dividing property following the breakdown of a marriage or de facto relationship.

Under the Family Law Act 1975, superannuation interests can be divided between separating parties through arrangements commonly referred to as superannuation splitting.

Our actuarial consultants provide independent superannuation valuations to assist with the fair and equitable division of superannuation interests in family law property settlements.

Our valuations are prepared in accordance with the relevant family law legislation and regulations.

What are Family Law Superannuation Valuations?

A family law superannuation valuation determines the value of a person’s superannuation interest for the purposes of dividing property following separation.

Under the Family Law Act 1975, superannuation is treated as property and may be divided between parties through a superannuation splitting arrangement.

This allows a portion of one party’s superannuation entitlement to be allocated to the other party as part of their overall property settlement.

Depending on the circumstances and the type of superannuation interest, the person receiving the split interest may be able to:

• Create a new interest within the same superannuation fund: The receiving party may become a member of the same fund and hold a separate superannuation interest.
• Transfer the interest to another superannuation fund: The entitlement may be rolled over into another complying superannuation fund, subject to the applicable rules.
• Receive a lump sum payment: Where permitted under superannuation and preservation laws, the entitlement may be paid as a lump sum.

Importantly, splitting a superannuation interest does not necessarily mean that the receiving party can immediately access the funds as cash. Superannuation generally remains subject to preservation rules, meaning benefits can only be accessed when the relevant conditions of release have been satisfied.

When is a Superannuation Valuation Required?

When a marriage or de facto relationship breaks down, the parties’ property and financial resources are considered as part of the property settlement process. This includes superannuation interests held by either party.

The type of superannuation interest determines whether a formal actuarial valuation is required.

Superannuation Interests That Generally Do Not Require

a Formal Actuarial Valuation

For certain types of superannuation interests, the value is determined using the account balance or prescribed value reported by the superannuation fund. A separate actuarial valuation is generally not required.

These interests would generally include accumulation accounts and other account based pensions, etc.

For these arrangements, the relevant superannuation fund generally provides the information needed to establish the value of the interest for family law purposes.

Superannuation Interests That Require a Formal

Actuarial Valuation

Other types of superannuation interests require a formal valuation using actuarial methods and factors prescribed under the family law regulations.

These typically include:

• Defined benefit superannuation interests: Benefits are generally determined by reference to factors such as salary, length of membership and the rules of the superannuation scheme, rather than simply reflecting an account balance.
• Non-account-based pensions: These may include fixed pensions, lifetime pensions, superannuation annuities, etc.

The valuation of these interests can be more complex, as the value may depend on factors such as the member’s age, salary, service history, pension entitlements, payment options and expected duration of benefits.

Our actuarial consultants can assist in determining the appropriate valuation approach and preparing valuations for superannuation interests requiring formal actuarial assessment.

How are Superannuation Interests Valued?

The valuation methodology depends on the type of superannuation interest being assessed.

For interests requiring an actuarial valuation, the applicable family law regulations prescribe methods and factors for determining the value of the superannuation entitlement.

The objective is to establish a value for the superannuation interest that can be used in determining an appropriate division of property between the parties.

Information Required for a Superannuation Valuation

To undertake a family law superannuation valuation, information must generally be obtained directly from the relevant superannuation fund.

1. Superannuation Fund Information

The key information required is the superannuation fund’s response to a Form 6 request under the family law process.

This provides details of the member’s superannuation interest at the relevant valuation date and may include:

• The value of the superannuation interest.
• Details of the member’s accrued benefits and entitlements.
• Relevant salary and service information, where applicable.
• Details of pension benefits and payment entitlements.
• Other information required to apply the relevant valuation methodology.

The information supplied by the fund is essential to ensuring the valuation reflects the member’s actual entitlements under the fund’s rules.

2. Previous Superannuation Statements

Previous member statements can also be useful when undertaking a valuation.

These may assist in understanding the history of the superannuation interest, identifying changes in membership or benefit entitlements, and clarifying any information required from the fund.

3. Other Relevant Information

Depending on the type of superannuation interest, additional information may be required to complete the valuation.

We can review the available fund documentation and advise on any further information needed.

Legislative and Regulatory Requirements

Family law superannuation valuations are governed by the relevant provisions of the Family Law Act 1975 and the associated superannuation regulations.

Our valuations are prepared in accordance with the Family Law (Superannuation) Regulations 2025 and, where applicable, the valuation methods and factors set out in the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2025.

Our reports clearly document the valuation methodology applied and the resulting value of the superannuation interest, providing an independent actuarial assessment suitable for use in family law property settlement matters.

Frequently Asked Questions

Do all superannuation interests require an actuarial valuation?

No. Many superannuation interests, including standard accumulation accounts and account-based pensions, can generally be valued using information provided by the superannuation fund. However, defined benefit interests and certain non-account-based pensions generally require a formal actuarial valuation.

What is a Form 6 in family law superannuation valuations?

A Form 6 is used to request information about a superannuation interest from the relevant superannuation fund under the family law superannuation information-gathering process. The fund’s response provides important details needed to determine the value of the interest.

How is a defined benefit superannuation interest valued?

A defined benefit interest is valued using prescribed actuarial methods and factors, taking into account relevant information about the member and the benefits provided under the superannuation scheme. This differs from an accumulation account, where the value is generally based on the member’s account balance.

Can superannuation be divided during a divorce or separation?

Yes. Under the Family Law Act 1975, superannuation interests can be split between parties as part of a property settlement following the breakdown of a marriage or eligible de facto relationship.

Can I access superannuation received through a splitting arrangement immediately?

Not necessarily. Superannuation received through a splitting arrangement generally remains subject to superannuation preservation requirements. Access will depend on the individual’s circumstances and whether an applicable condition of release has been met.

Who can request a family law superannuation valuation?

Solicitors, family law practitioners and individuals involved in property settlement proceedings may engage an actuary to value a superannuation interest. The valuation may be required to assist with negotiations, consent orders or court proceedings.

Contact GM Actuaries for a Family Law Superannuation

Valuation

Whether you are a solicitor acting for a client, a superannuation fund, or an individual involved in family law property settlement proceedings, we can assist with the valuation of superannuation interests.

We provide independent actuarial valuations in accordance with the relevant family law legislation and regulations, helping parties and their legal advisers understand the value of superannuation assets and facilitate the property settlement process.

Contact us to discuss your requirements or to arrange a family law superannuation valuation.