In many jurisdictions, retirement assets accumulated during a marriage are considered part of the marital estate and are subject to division upon divorce. This means the value of superannuation or pension funds accrued from the date of marriage until the date of separation may be divided between the parties. A common understanding is that this division often aims for an equal distribution, resulting in each party receiving 50% of the relevant amount.
The importance of this division lies in ensuring both parties have adequate resources for their retirement. It acknowledges that both individuals contributed to the marriage, whether financially or otherwise, and are therefore entitled to a share of the assets accumulated during that period. Historically, women were often at a disadvantage in divorce settlements due to lower earning capacity or primary caregiver roles, and the inclusion of retirement assets aims to address this imbalance. Such divisions can provide significant financial security, particularly for individuals who may have sacrificed career advancement to support the family.
