Am I in a De Facto Relationship – and What Does That Mean for Property Settlement?

The existence of a ‘de facto relationship’ does not only arise from living with your partner, but may also be established by any of the of the following circumstances, as set out in s 4AA of the Family Law Act 1975 (Cth):

  1. The duration of the relationship;
  2. The nature and extent of your common residence;
  3. Whether a sexual relationship exists;
  4. The degree of financial dependence or interdependence, and any arrangement for financial support;
  5. The ownership, use and acquisition of their property;
  6. The degree of mutual commitment to a shared life (i.e planning for the future, planning potential joint business venture);
  7. Whether the relationship is or was registered under the prescribed law;
  8. The care and support of children;
  9. The reputation and public aspect of the relationship (i.e. whether your friends and family considered you to be in a de facto relationship, including attending events together, going on family holidays etc).

In determining whether parties are in a ‘de facto relationship’ as defined in the Family Law Act, the Court have a wide discretionary power, meaning that each Judicial Officer may attach more or less weight the various factors.

Importantly, for couples that have gone through a period of separation and later reconciled, the Court will look at the total cumulative period that you were in a relationship and not only the most recent.

If your ‘de facto relationship’ has broken down, you may be entitled to a property settlement under section 90SM of the Family Law Act. For the Court to be able to make Orders for a property settlement, you must be able to establish that:

(a) The period, or the total of the period, of the de facto relationship is at least 2 years; or

(b) A party to the de facto relationship has made substantial financial and/or non-financial contributions toward the acquisition, conservation, or improvement of any property of the parties’ de facto relationship; or

(c) A failure to make an order or declaration would result in a serious injustice.

For example, if you have not been in a de facto relationship for 2 years but have helped undertake significant renovations at your partner’s home, including unpaid labour, buying materials, etc., this may be considered a substantive non-financial contribution by you for which you may be entitled to a property settlement.

Whether you have recently entered into a new relationship and are looking to protect your assets or have recently ended a short relationship and are wondering whether you are entitled to a property settlement, we recommend that you seek legal advice from an experienced Family Lawyer to understand your rights.

Limitation dates apply!

For de facto couples, you must address your property settlement within 2 years of your separation date. Outside of that period, you will be required to seek the court’s permission to proceed with a claim for a property settlement.

If you would like a personalised assessment of your circumstances, contact us on 07 5609 4933 for a free initial consultation or book online https://www.ctlawyers.com.au/booking/.

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