diff --git a/java/java-impl/src/com/intellij/codeInsight/intention/impl/SplitDeclarationAction.java b/java/java-impl/src/com/intellij/codeInsight/intention/impl/SplitDeclarationAction.java
index cda54e2f1372..5f67007c500d 100644
--- a/java/java-impl/src/com/intellij/codeInsight/intention/impl/SplitDeclarationAction.java
+++ b/java/java-impl/src/com/intellij/codeInsight/intention/impl/SplitDeclarationAction.java
@@ -1,18 +1,4 @@
-/*
- * Copyright 2000-2013 JetBrains s.r.o.
- *
- * Licensed under the Apache License, Version 2.0 (the "License");
- * you may not use this file except in compliance with the License.
- * You may obtain a copy of the License at
- *
- * http://www.apache.org/licenses/LICENSE-2.0
- *
- * Unless required by applicable law or agreed to in writing, software
- * distributed under the License is distributed on an "AS IS" BASIS,
- * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
- * See the License for the specific language governing permissions and
- * limitations under the License.
- */
+// Copyright 2000-2018 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license that can be found in the LICENSE file.
 package com.intellij.codeInsight.intention.impl;
 
 import com.intellij.codeInsight.CodeInsightBundle;
@@ -28,9 +14,9 @@ import com.intellij.psi.impl.source.tree.Factory;
 import com.intellij.psi.impl.source.tree.TreeElement;
 import com.intellij.psi.javadoc.PsiDocComment;
 import com.intellij.psi.util.PsiTreeUtil;
+import com.intellij.psi.util.PsiTypesUtil;
 import com.intellij.psi.util.PsiUtil;
 import com.intellij.refactoring.util.RefactoringUtil;
-import com.intellij.util.IncorrectOperationException;
 import com.siyeh.ig.psiutils.CommentTracker;
 import org.jetbrains.annotations.NotNull;
 
@@ -84,7 +70,7 @@ public class SplitDeclarationAction extends PsiElementBaseIntentionAction {
     if (declaredElements.length == 1) {
       PsiLocalVariable var = (PsiLocalVariable)declaredElements[0];
       if (var.getInitializer() == null) return false;
-      if (var.getTypeElement().isInferredType()) {
+      if (var.getTypeElement().isInferredType() && !PsiTypesUtil.isDenotableType(var.getType(), var)) {
         return false;
       } 
       PsiElement parent = decl.getParent();
@@ -128,7 +114,7 @@ public class SplitDeclarationAction extends PsiElementBaseIntentionAction {
   }
 
   @Override
-  public void invoke(@NotNull Project project, Editor editor, @NotNull PsiElement element) throws IncorrectOperationException {
+  public void invoke(@NotNull Project project, Editor editor, @NotNull PsiElement element) {
     final PsiDeclarationStatement decl = PsiTreeUtil.getParentOfType(element, PsiDeclarationStatement.class);
 
     final PsiManager psiManager = PsiManager.getInstance(project);
@@ -144,23 +130,32 @@ public class SplitDeclarationAction extends PsiElementBaseIntentionAction {
   }
 
   public static PsiAssignmentExpression invokeOnDeclarationStatement(PsiDeclarationStatement decl, PsiManager psiManager,
-                                                                     Project project) throws IncorrectOperationException {
+                                                                     Project project) {
     if (decl.getDeclaredElements().length == 1) {
       PsiLocalVariable var = (PsiLocalVariable)decl.getDeclaredElements()[0];
       var.normalizeDeclaration();
+      final PsiTypeElement typeElement = var.getTypeElement();
+      if (typeElement.isInferredType()) {
+        PsiTypesUtil.replaceWithExplicitType(typeElement);
+      }
+      final String name = var.getName();
+      assert name != null;
       PsiExpressionStatement statement = (PsiExpressionStatement)JavaPsiFacade.getInstance(psiManager.getProject()).getElementFactory()
-        .createStatementFromText(var.getName() + "=xxx;", decl);
+                                                                              .createStatementFromText(name + "=xxx;", decl);
       statement = (PsiExpressionStatement)CodeStyleManager.getInstance(project).reformat(statement);
       PsiAssignmentExpression assignment = (PsiAssignmentExpression)statement.getExpression();
       PsiExpression initializer = var.getInitializer();
+      assert initializer != null;
       PsiExpression rExpression = RefactoringUtil.convertInitializerToNormalExpression(initializer, var.getType());
 
-      assignment.getRExpression().replace(rExpression);
+      final PsiExpression expression = assignment.getRExpression();
+      assert expression != null;
+      expression.replace(rExpression);
 
       PsiElement block = decl.getParent();
       if (block instanceof PsiForStatement) {
         final PsiDeclarationStatement varDeclStatement =
-          JavaPsiFacade.getInstance(psiManager.getProject()).getElementFactory().createVariableDeclarationStatement(var.getName(), var.getType(), null);
+          JavaPsiFacade.getInstance(psiManager.getProject()).getElementFactory().createVariableDeclarationStatement(name, var.getType(), null);
 
         // For index can't be final, right?
         for (PsiElement varDecl : varDeclStatement.getDeclaredElements()) {
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/splitDeclaration/afterVar.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/splitDeclaration/afterVar.java
new file mode 100644
index 000000000000..7705ed13bdac
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/splitDeclaration/afterVar.java
@@ -0,0 +1,7 @@
+// "Split into declaration and assignment" "true"
+class Test {
+  {
+      String l;
+      l = "foo";
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/splitDeclaration/beforeVar.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/splitDeclaration/beforeVar.java
new file mode 100644
index 000000000000..eff080034959
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/splitDeclaration/beforeVar.java
@@ -0,0 +1,6 @@
+// "Split into declaration and assignment" "true"
+class Test {
+  {
+    var l <caret>= "foo";
+  }
+}
\ No newline at end of file