Calculation of family law splits
Understand the effect and calculation of a family law split on your benefit.
Disclaimer
The following information is provided as an explanation of how family law splits are calculated and applied to a member’s benefit. Each individual’s circumstances are unique. This information should not be relied upon for making decisions regarding your family law matter. Prior to making any decisions about splitting your superannuation or family law matter, you should consider seeking independent legal advice and or financial advice.
How is my family law split calculated?
The effect and calculation of the family law split on your benefit will depend on whether it is in the contributing, preserved or pension phase.
Fund rules differ
Select your fund to view the details
- CSS
- DFRDB
- MilitarySuper
- PSS
This section contains:
Contributing and Preserved Benefit
Base Amount Split
The first step to applying a split is to calculate the value of a member’s benefit. This is different to the equity that is displayed on a member’s statement. The values used to calculate a split of a benefit are specific to family law matters. A member’s statement will not be used to determine the value of a benefit for family law purposes.
You can request a Form 6 Application for Superannuation Information, the response to which can be taken to an actuary, financial planner or your legal representative who will be able calculate the value of the benefit for family law purposes.
Example
Meet Angela Angela is going to demonstrate how this applied to her and her family law matter. Angela is a PSS member and holds a contributing benefit. After her family law matter is finalised through the Federal Circuit and Family Law Court, Anegla serves a copy of the Court Order on CSC. This Court Order states that Angela’s ex-spouse Robert is to be allocated a Base Amount of $350,000 out of Angela’s benefit, calculated in accordance with Part 7 of the Family Law (Superannuation) Regulations 2025. The date of effect for this split, known as the ‘Operative Time’ is four business days after service. Angela served the Order on CSC on Monday 1 April, so the Operative Time is Friday 5 April. At the Operative Time Angela had served 30 complete years of service, was 49 years and 9 months old and joined PSS in 1994. The first step to applying the split to Angela’s benefit is to calculate the value of her benefit. This is different to the equity that is found on her member statement. The values that are calculated to split the benefit are specific to family law matters. |
Valuing the Benefit
Two values are calculated at the Operative Time—these are the Family Law Value & the Scheme Value.
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Back to Angela. Angela’s benefit components at the Operative Time were:
For PSS contributing members, the total equity is calculated as the Accrued Benefit Multiple × Average Salary, plus any accumulated transfer amounts. |
Family Law Value
To calculate the Family Law Value, factors are applied to each component of a benefit. These factors applied to a split are individual and are reflective of length of service in complete years, age in years and months, sex and commencement of PSS membership.
For a contributing member the Family Law Value is calculated using the following formula:
Family Law Value = AMB × AS × ABFy+m,s + AMC × (1 – MCFy+m,s) + APC × (1 – PCFy+m,s) + ATA – ERDA
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Based on Angela's length of service in complete years, age in years and months, sex and date of commencement in PSS the factors for calculation of her Family Law Value are as follows:
Angela's Family Law Value is $907,194.55 as calculated by the formula: Family Law Value = 7 × $130,000 × 0.971608 + $230,000 × 0.03585 + $110,000.00 × 0.043507 + $10,000.00 – $0 |
Scheme Value
The same formula is used to calculate the Scheme Value. However, different factors are applied.
More information about Scheme Value factors can be found in the PSS Trust Deed.
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Based on Angela’s length of service in complete years, age in years and months, sex and date of commencement in PSS the factors for calculation of her Scheme Value are as follows:
Angela's Scheme Value is $982,030.90 as calculated by the formula: Scheme Value = 7 x 130,000 x 1.055586 + 230,000 x 0.030761 + $110,000 x 0.039751 + $10,000 - $0 |
It is important to note that the Family Law and Scheme values may differ to a member’s actual equity. It is possible for both or either of the values to be higher or lower than a member’s actual equity.
Calculating Associate Benefit
To work out the starting value of the associate benefit the Separation Amount must be calculated. The Separation Amount is calculated in reference to the Base Amount stated within the Court Order. In splits where the Family Law Value is the same or higher than Scheme Value, the Separation Amount will equal the Base Amount.
In splits where the Scheme Value is higher than the Family Law value, the Separation Amount will be higher than the Base Amount. This is to ensure that the Separation Amount reflects the same proportion of the Scheme Value as the Base Amount does of the Family Law Value.
If the Scheme Value is higher, the Separation Amount is calculated using the formula below:
| Separation Amount | = | (Scheme Value – Surcharge Debt) | × | ( | Whole dollars in base amount | ) |
| Whole dollars in Family Law Value |
This formula increases the Base Amount by the same proportion that the Scheme Value is higher than the Family Law Value. For instance, if the Scheme value is 15% higher than the Family Law value, the Transfer Amount will be 15% higher than the Base Amount.
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Angela’s split will look like this:
Separation Amount = $378,872.45 |
Reduction of Member’s Benefit
To work out the reduction of the member’s benefit, we need to first work out the separation factor. This is calculated using the following formula:
| Separation Factor | = | ( | Whole Dollars in Separation Amount | ) |
| Whole Dollars in Scheme Value |
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Applying this to Angela's scenario:
Separation Factor = 0.385805 |
This separation factor is then applied to all components of the member’s benefit. The separation factor is the amount that the component is multiplied by to get the reduction to that component.
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In Angela’s case, the actual reduction to his benefit is $354,940.40. This is more than the Base Amount stated, but less than the Separation Amount to her ex-spouse, Robert.
*For PSS contributing members, the total equity is calculated as the Accrued Benefit Multiple × Average Salary, plus any accumulated transfer amounts. |
Please note that depending on each member’s unique circumstances, the reduction to their benefit may be more or less than the Base Amount or Transfer Amount.
As a result of the Family Law Split there will be a permanent reduction to the members ABM and this will impact the superannuation benefit payable to the member when they claim their benefit. A member’s ABM will continue to grow at the rate dependent on their contribution rate and length of service.
Preserved Benefit
Percentage Split
The first step to applying the split to a member’s benefit is to calculate the value of their benefit. This is different to the equity that is found on a member statement. The values that are calculated are specific to family law matters.
You can request a Form 6 Application for Superannuation Information, the response to which can be taken to an actuary, financial planner or your legal representative who will be able calculate the value of the benefit for family law purposes.
Valuing the Benefit
Two values are calculated at the Operative Time —the Family Law Value and the Scheme Value. The values for the Pension and Preserved benefits are initially calculated separately.
Example
Eric is a PSS member and has a preserved benefit. Eric and his ex-spouse Tom come to an agreement about how to split Eric’s superannuation and Tom serves a copy of the signed Superannuation Agreement on CSC. This Agreement states that Tom is to be allocated a percentage of 40 % out of Eric’s splitable benefit. The date of effect for this split, known as the ‘Operative Time’ is four business days after service. Tom served the Agreement on 01 July, so the Operative Time is 06 July. At the Operative Time Eric was 50 years old and retains his option to take his benefit as a pension. Eric’s preserved benefit components at the Operative Time
The funded benefit is the total of any funded member and productivity benefits held by the member. |
Family Law Value
To calculate the Family Law Value, factors are applied to components of the benefit. These factors applied to certain components of a benefit. These factors applied to a split are specific to the individual and the member's age in years and months, sex and if they retain their option to take their benefit as a pension.
For a preserved member the Family Law Value is calculated using the following formula:
Family Law Value = UDB × UDBFy+m + FDB × FDBFy+m + ATA - ERDA
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Based on Eric's age in years and months, sex and eligibility to claim a pension the factors for the calculation of his Family Law Value are as follows:
Eric's Family Law Value is $373,580.60 as calculated by the formula: Family Law Value = $160,000.00 x 0.85161 + $150,000.00 x 1.24882 + 1.24882 - $50,000.00 |
To calculate the Family Law Values for the preserved component, factors are applied to each component of the benefit. For the member and ancillary components, the factor is always 1.
The value of each of the preserved components is then added together to get the total preserved Family Law Value.
Scheme Value
The same methods are used to calculate the Scheme Value. However, different factors are used.
More information about Scheme Value factors can be found in the PSS Trust Deed.
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Based on Eric's age in years and months, sex and eligibility to claim a pension the factors for the calculation of his Scheme Value are as follows:
Eric's Family Law Value is $391,786.70 as calculated by the formula: Family Law Value = $160,000.00 × 0.92412 + $150,000.00 × 1.29285 × $50,000.00 |
Calculating the Associate Benefit
To work out the starting value of the Associate Benefit, the Separation Amount must be calculated. The Separation Amount is calculated in reference to the percentage within the Court Order or Agreement.
The percentage stated in the Court Order or Agreement is the applied to the higher of the Family Law or Scheme Value.
For example, if the Scheme Value is higher, the Separation Amount is calculated using the formula below:
Separation Amount = Scheme Value × Splitting Percentage
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For Eric's split the Scheme Value is higher, so the calculation will look like this: Separation Amount = $391,786.70 x 40% Separation Amount = $156,714.68 |
Reducing the Member’s Benefit
To work out the reduction of a member’s benefit, we need to first work out the separation factor. This is calculated using the following formula:
| Separation Factor | = | ( | Whole Dollars in Separation Amount | ) |
| Whole Dollars in Scheme Value |
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Applying this to Eric's scenario:
Separation Factor = 0.399999 |
The separation factor is then applied to all funded components of the member’s benefit. The separation factor is the amount that the component is multiplied by to get the reduction to that component. The member’s unfunded benefit is then reduced by the difference between the reduction to the funded components and the Separation Amount.
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In Eric's case, the reduction to his benefit is $156,714.68
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Please note that depending on each member’s unique circumstances, the reduction to their benefit may be more or less than the percentage stated in the Court Order or Agreement.
Pension Benefit
The first step to applying the split to a member’s benefit is to calculate the value of their benefit. The values that are calculated are specific to family law matters.
You can request a Form 6 Application for Superannuation Information, the response to which can be taken to an actuary, financial planner or your legal representative who will be able calculate the value of the benefit for family law purposes.
Valuing the benefit
Two values are calculated at the Operative Time, the Family Law Value & the Scheme Value.
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Derrick is a PSS member and has pension benefit. After his family law matter is finalised through the Federal Circuit and Family Law Court, Derrick serves a copy of the Court Order on CSC. This Court Order states that David’s ex-spouse Ann is to be allocated a Base Amount of $100,000 out of Derrick’s benefit, calculated in accordance with Part 7 of the Family Law (Superannuation) Regulations 2025. The date of effect for this split, known as the ‘Operative Time’ is four business days after service. David served the Order on CSC on Monday 01 July, so the Operative Time is Friday 06 July. At the Operative Time Derrick is 63 years old, and his annual gross pension at the Operative Time is $50,000. His pension is being paid due to age retirement. |
Family Law Value
To calculate the Family Law Values for the pension component, a factor is applied to the annual pension amount. This factor is based on the member’s type of pension, age in years and months, and sex.
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For Derrick, his Family Law Value is $718,745.00:
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Scheme Value
The same methods are used to calculate the Scheme Value. However, different factors are used.
More information about Scheme Value factors can be found in the PSS Trust Deed.
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For Derrick, his Scheme Value is $754,885.00:
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Calculating the Associate Benefit (Pension)
To work out the starting value of the associate benefit, the Separation Amount must be calculated. The Separation Amount is calculated in reference to the Base Amount stated in the Agreement or Court Order.
In splits where the Family Law Value is the same or higher than Scheme Value, the Separation Amount will equal the Base Amount.
In splits where the Scheme Value is higher than the Family Law value, the Separation Amount will be higher than the Base Amount. This is to ensure that the Separation Amount reflects the same proportion of the Scheme Value as the Base Amount does of the Family Law Value.
The Separation Amount is calculated using the formula:
| Separation Amount | = Scheme Value × | ( | Whole Dollars in Base Amount | ) |
| Whole Dollars in Family Law Value |
This formula increases the Base Amount by the same proportion that the Scheme Value is higher than the Family Law Value. For instance, if the Scheme value is 15% higher than the Family Law value, the Separation Amount will be 15% higher than the Base Amount.
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For Derrick's pension split the Scheme Value is higher than the Family Law Value:
Separation Amount = $105,028.21 |
The associate pension is then calculated by dividing the Separation Amount by an associate Pension Conversion Factor base on the associate’s age and gender.
| Annual Associate pension | = | ( | Separation Amount | ) |
| Pension Conversion Factor |
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At the Operative Time Ann was 54 years old, so her pension conversion factor is 19.5917.
Annual Associate pension = $5,360.85 |
Reducing the Member's Benefit
To work out the reduction of a member’s benefit, we need to first work out the separation factor.
This is calculated using the following formula:
| Separation Factor | = | ( | Whole dollars in Separation Amount | ) |
| Whole dollars in Scheme Value |
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For Derrick:
Separation Factor = 0.139131 |
The Separation factor is then applied to the member’s annual pension to calculate the reduction:
Reduction to Pension = Gross Annual Pension × Separation Factor
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For Derrick: Reduction to Pension = $50,000.00 × 0.139131 Reduction to Pension = $6,956.56 |
The reduced pension is then calculated as:
Reduced Pension = Gross Annual Pension – Reduction to Pension
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For Derrick: Reduction to Pension = $50,000.00 – $6,956.56 Reduction to Pension = $43,043.44 |