About the Author
Sandra Banjamin
Published on November 12, 2024
In Australia, being in a de facto relationship means you and your partner live together in a committed way, similar to marriage—but without the wedding.
While de facto relationships can offer flexibility, they also come with a few unexpected twists, especially around property, finances, and parenting arrangements, if things don’t work out. And in this article, we’re going to explore these and ultimately help you to understand the disadvantages of de facto relationships in Australia.
So, if you’re wondering about de facto relationships and if there are ways to protect yourself or understand what you’re entitled to, our family solicitors have put together all of the information you need – keep reading to learn more.
Legal implications of de facto relationships
In Australia, de facto relationships are taken pretty seriously under the law. The Family Law Act treats de facto couples similarly to married couples when it comes to dividing assets and handling parenting arrangements if things go south.
These legal implications can be surprising, especially if you thought that living together wouldn’t involve the same commitments as marriage. If a de facto relationship ends, one partner might have claims on the other’s property or financial resources, including spousal maintenance in some cases. It’s also possible for either partner to make claims related to property, financial contributions, and even parenting arrangements. This means that navigating a de facto break-up can be just as complex as a divorce, sometimes even requiring family court intervention to settle disagreements.
For anyone in a de facto relationship NSW or anywhere else in Australia, it’s worth knowing your rights and taking steps to protect your assets early on. Consulting with a family law solicitor or binding financial agreement lawyer can help you understand what’s at stake and how to keep things straightforward, should you ever need to.
Financial disadvantages of de facto relationships
One of the big surprises for de facto couples is how finances can become entwined, sometimes in ways they didn’t expect.
Without formal agreements in place, de facto partners can become responsible for each other’s financial commitments. For example, if one partner takes on debt or large expenses during the relationship, the other might end up sharing some of that responsibility, especially if their finances were pooled or used jointly.
Also, when a de facto relationship breaks down, dividing assets can get tricky. Unlike a traditional marriage, where there might be a clearer understanding around shared property, de facto couples often don’t think about how property or financial contributions could be divided if the relationship ends. This can lead to disputes over who contributed what and what each partner is entitled to after separation. So, while it may seem simple at first, de facto relationships can create financial ties that are hard to untangle when things don’t work out.
Impact on property and asset division
When a de facto relationship ends, dividing up property and assets can be one of the most challenging parts.
In Australia, the law treats a de facto couple similarly to married couples, meaning that any property acquired during the relationship may be considered part of a shared property pool. This includes things like your home, joint investments, and even significant assets one partner brought into the relationship. It doesn’t always matter whose name is on the title—if you’ve shared a life together, it’s possible that both partners have a stake.
The Family Court looks at various factors when dividing assets, like the length of the relationship, each person’s financial and non-financial contributions, and future financial needs. This is often one of the things that people find most surprising, especially if one partner believes their pre-relationship assets will remain solely theirs. Without a binding financial agreement in place, property division can be unpredictable and may even require court intervention if both sides can’t agree on a fair split.
Understanding your potential entitlements and risks in a de facto partner break-up can be eye-opening, especially if large assets are involved.
Custody and parenting disputes in de facto relationships
For de facto couples with children, ending the relationship doesn’t end the responsibilities—especially when it comes to custody and parenting arrangements. In Australia, de facto parents have the same legal obligations to their children as married parents. This means that decisions around where the child will live, how much time they’ll spend with each parent, and who will make important life decisions still need to be resolved, either through mutual agreement or, if necessary, with help from the Family Court.
When de facto couples can’t agree on parenting arrangements, the court’s priority is always the best interests of the child. This involves looking at factors like each parent’s relationship with the child, the stability of each home environment, and the child’s emotional and educational needs. The process can be complex, and parents may need to go through mediation or court proceedings to reach a fair agreement. Parenting disputes can be stressful and drawn-out but understanding your rights and responsibilities as a de facto parent can make it easier to focus on what’s best for the children.
Does a binding financial agreement protect from a de facto relationship?
A binding financial agreement (BFA) can be an effective tool for de facto couples looking to protect their assets. Similar to a prenuptial agreement, a BFA outlines how property, financial resources, and other assets will be divided if the relationship ends. It can also specify conditions around spousal maintenance to help avoid financial disputes down the line.
While a BFA can provide some security, it’s not a foolproof solution. For a BFA to hold up in court, both parties need to have received independent legal advice before signing, and the agreement must meet strict requirements to be legally binding. Even with a BFA in place, it’s possible for one partner to challenge its validity, especially if they believe it was signed under pressure or if circumstances have changed significantly.
For de facto couples with significant assets or differing financial situations, a BFA can be a helpful way to protect against uncertainty. However, it’s essential to approach it carefully to ensure it provides the intended protection.
Can you get spousal maintenance from a de facto relationship?
Spousal maintenance isn’t limited to married couples—it can apply to de facto relationships too. If a de facto relationship ends and one partner is unable to support themselves financially, they may be entitled to spousal maintenance from the other partner. The Family Court considers several factors when deciding on spousal maintenance, such as each partner’s income, financial resources, and needs, as well as any other relevant circumstances like the length of the relationship or any shared responsibilities for children.
This can come as a surprise to many de facto couples, as it means that even without a formal marriage, financial support obligations may remain. Spousal maintenance claims can add complexity to the separation process, especially if one partner is financially dependent on the other. Understanding the criteria for spousal maintenance can help de facto partners plan for their financial future, particularly in the case of a relationship break-up.
How Unified Lawyers can help
Navigating the complexities of a de facto relationship—especially when it comes to property settlements, financial agreements, and parenting arrangements—can be challenging. Here at Unified Lawyers, we understand the unique issues de facto couples face and can provide clear, personalised advice to help protect your interests.
Whether you’re looking to establish a binding financial agreement, understand your entitlements, or resolve a parenting dispute, our team has the expertise to guide you through each step with confidence.
If you have questions about your rights or need support through a de facto relationship separation, reach out to Unified Lawyers for professional, compassionate assistance tailored to your needs.
To get in touch, just give us a call on 1300 667 461 or use the button below to schedule a consultation online.
Published on November 12, 2024
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