Are you in a de facto relationship?

For those of you who have been in a relationship for three or more years, it may be time to look into the legal status of your relationship, and any possible legal implications. One of our relationship property solicitors Joyce, spoke on RDU 98.5 to what it means to be in a de facto relationship. Follow the link below to hear the whole interview, or continue reading for a summary of her chat.

What is a de facto couple?

A de facto couple can be summarized as when you are over the age of 18, you are not married, not in a civil union, but are in a relationship where you essentially “express to the world” that you are in a relationship.

A de facto relationship really relies on the component of presenting to the world that you are a couple – this restricts scenarios such as flatmates being considered a de facto couple for having lived together for three-plus years. Some other factors that may be considered in this process include whether you are living in the same house and if your finances are interlinked to name a few.

Legal implications...

If you are in a de facto relationship and you find yourself in a situation where you have to separate your finances, there are two outcomes that may arise. First is the relationship of short duration – this is where you have been in the relationship for less than three years. Essentially, you will get out of the relationship the same costs you put in unless you have contributed substantially to “relationship” costs over this time. If you’ve been in the de facto relationship for over three years, separation of finances applies the same process as marriage – a 50/50 split, unless otherwise legally agreed.

The above processes are presumptive. These can be adjusted through what is called “asset protection.” In all de facto relationships, marriages, and civil unions, you have the option to sign a “contracting out agreement.” This agreement means you are contracting “out” of the Act that states you must separate your finances with a 50/50 split.

You can record and create these contracts with the help of your lawyer, at any point in your relationship. At Godfreys Law, Charles and Joyce are our relationship property experts. Get in touch with them on 03 366 7469 to look into creating a contracting out agreement today.