Uncover Hidden De Facto Relationships: Are You in One Unknowingly?
You may not be aware that you are in a de facto relationship, but understanding this status is crucial. The implications of this relationship type can greatly affect you and your partner if you decide to part ways.
Understanding De Facto Relationships
A de facto relationship, as defined by Australia’s Family Law Act, arises when two people live together as a couple without being married or related. To qualify, they must share a domestic life together on a genuine, everyday basis.
Growth of De Facto Relationships
- The number of Australian couples in de facto relationships has significantly risen, from 6% in 1986 to about 20% today.
- This increase corresponds with a steady decline in the national marriage rate.
Kira Duggan, research director at the Australian Institute of Family Studies (AIFS) in Melbourne, emphasizes that many individuals do not recognize the legal implications of such a relationship. Often, moving in together is a clear sign of a de facto status, which can mimic a marriage-like relationship.
Legal Implications During Separation
Understanding the legal differences between marriage and de facto relationships is vital, especially during separation. Changes to the Family Law Act in 2009 aligned de facto relationships legally with marriages, but individuals in de facto relationships still bear the burden of proving their relationship’s existence if they separate.
Asset Division and Financial Matters
In the event of a breakup, determining the timeline of the relationship may present challenges. Unlike married couples, who must be separated for at least 12 months before filing for divorce, de facto partners have two years to file claims regarding asset division.
- Both individuals’ assets will be considered, including individual and shared assets.
- Big assets, such as homes and superannuation, often become contentious points during separation.
Even properties purchased before the relationship may be included in the asset pool. Legal expert Ella Hickman explains that contributions made during the relationship, such as maintenance or other financial inputs, will be evaluated during asset division discussions.
Protecting Your Financial Interests
To safeguard assets in a de facto relationship, entering into a binding financial agreement, also known as a prenup, is advisable. Unfortunately, many may overlook this important step.
Experts recommend seeking legal advice to navigate your entitlements. Accessible resources include Legal Aid and community legal centers, which can offer valuable assistance without cost.
Being informed about your relationship status and its implications ensures you are safeguarded should circumstances change. Awareness is vital for managing your financial security and legal rights effectively.
