ESSSuper and Family Law Property Settlements

When navigating a property settlement following a separation or divorce, one of the more complex issues to address can be superannuation—especially when one party has entitlements under the Emergency Services and State Super (ESSSuper) scheme. This is particularly relevant for police officers whose superannuation interests may fall under defined benefit schemes, which are treated differently from standard accumulation funds.

Why ESSSuper is Different

ESSSuper includes both defined benefit and accumulation schemes, and understanding the nature of the entitlement is critical. A defined benefit fund is not based on a balance that fluctuates with investment performance, but rather on a formula involving years of service, final average salary, and accrual rates. This makes calculating the present-day value of a member’s entitlement more complicated than with typical super funds.

Moreover, some ESSSuper schemes are partially or fully unfunded, meaning the benefit is paid directly by the government at retirement rather than accumulated in an account. This can affect how the entitlement is valued and whether it is splittable under family law.

Valuation and Splitting Challenges

In family law property settlements, superannuation is treated as property and must be disclosed and considered. However, valuing defined benefit interests—such as those in ESSSuper—requires an understanding of Regulation 14 valuation methods under the Family Law (Superannuation) Regulations 2001.

There are strict requirements and procedural steps involved in seeking information from ESSSuper, requesting valuations, and ultimately splitting superannuation entitlements, if appropriate. Not all entitlements are readily splittable, and in some cases, a cash adjustment or alternative asset division may be more appropriate.

Berry Family Law, have extensive experience advising clients who are members of ESSSuper or who are separating from a partner with an ESSSuper entitlement. We understand the unique legal, financial, and procedural complexities that come with these schemes.

Our team can assist by:

• Identifying the type of ESSSuper scheme involved;
• Requesting the correct valuation and disclosure documents;
• Working with actuaries where necessary;
• Advising on the implications of defined benefit structures;
• Negotiating fair and legally sound settlement arrangements; and
• Drafting superannuation splitting orders that comply with court requirements.

If you or your former partner are members of ESSSuper, it’s vital to seek specialist family law advice to ensure your settlement is both fair and legally enforceable.

Contact Berry Family Law today to speak with a team that knows ESSSuper—and knows how to help.