‘De facto, night facto, the fact they are facto-ing at all is repulsive in the extreme’ – Kim Craig Nee Day
Your mid-20s-something Sydney family lawyer Rhiannan Earl is here to dispel the most common myths you have heard about moving in together.
You’ve heard from your parents, friends and that family member who went through a nasty divorce 10 years ago that if you aren’t careful, your partner can take you for half of what you own in the event that you separate. There are two parts to this statement that are plain wrong;
1. Once we move in together or have been together for 6 months…
The definition of a de-facto spouse varies across different jurisdictions in Australia. For example, for Centrelink purposes, a de facto spouse can be someone you have been in a relationship with for at least 6 months.
In the context of family law, a de facto spouse is generally accepted as someone you have been living with on a genuine domestic basis for a period of about two years, unless there are exceptional circumstances, such as having a child together or having made significant financial endeavours together.
2. They can take half of what I own.
Once a de facto relationship has been established to the requisite standard and then we are starting to discuss property settlement, there is no presumption that the Court will start at an equal division of the assets.
When assessing whether a property settlement ought to occur, that is, does your partner have a claim to your assets, property or money; one of the key considerations which will be taken into account is whether they have contributed to the purchase or maintenance of assets, property or money.
Solicitors ask; do you have a joint savings account? Has your partner paid a portion of your mortgage? Is your partner paying all the utilities and rates for the house, while you pay the mortgage? Has your partner done any renovations to your property?
All of these are contributions to the purchase and maintenance of assets, property or money could result in the need for a property adjustment. However, it is important to remember contributions will need to be proportionately applied to the overall asset pool, and this does not automatically entitle them to half of your assets.
You do not need to wait until the breakdown of your relationship to protect your assets and investments. If you are thinking about these issues and need some more detailed advice, we are here when you need us.
