De Facto Relationships

Andrew James • Aug 19, 2019

Can De Facto couples apply for a Property Settlement?

Under the Family Law Act 1975 , a party to a de facto relationship may be able to apply to the Court for a property settlement if that relationship breaks down.  The right of a party to a de facto relationship to apply for a property settlement arises where:

 

 

  • The parties have lived in a de facto
    relationship for at least two years; or
  • The parties to the de facto relationship have a
    child together; or
  • Either one of the parties to the de facto
    relationship has made a substantial financial contribution to the relationship.

What does the Court consider to be a de facto relationship?

If the parties to a relationship were not previously married, the Court must be satisfied that the relationship was in fact a de facto relationship before it will consider making an order for a property settlement. In deciding whether a relationship is a de facto relationship, it does not matter how the parties to that relationship describe their relationship. Instead, the Court’s decision as to whether a relationship is a de facto relationship is based on the requirements set out in the Family Law Act 1975.  That Act states that a person will be considered to have been in a de facto relationship if:

 

  • the parties to the relationship were not legally married to each other; and
  • the parties to the relationship were not related by family; and
  • having regard to all the circumstances of their relationship, they have a relationship as a couple living together on a genuine domestic basis.

 

To assist in determining whether parties ‘have a relationship as a couple’, the Family Law Act 1975 stipulates that the following matters are relevant considerations:

 

  • the duration of the parties’ relationship;
  • the nature and extent of the parties’ common residence;
  • whether a sexual relationship existed between the parties;
  • the degree of financial dependence or interdependence, and any arrangements for financial support, between the parties;
  • the ownership, use and acquisition of the parties’ property;
  • the degree of mutual commitment to a shared life by the parties;
  • whether the relationship is or was registered under a prescribed law of a State or Territory as a prescribed kind of relationship;
  • the care and support of children by the parties;
  • the reputation and public aspects of the parties’ relationship.

 

Not every relationship is the same, and it is not necessary for each of the above considerations to apply to a relationship before a finding can be made that a de facto relationship existed.  Instead, whether a Court will find that a relationship is a de facto relationship will depend on the individual circumstances of each case.

Can a Same Sex Couple apply for a Property Settlement?

In deciding whether a relationship is a de facto relationship within the meaning of the Family Law Act 1975 , it does not matter whether the parties to it are of the opposite sex or are a same sex couple. In either case, the same principles apply, and where a same sex couple is found to have been living in a de facto relationship, they are entitled to
the same rights under the Family Law Act 1975 as a couple of the opposite sex.

How does a Court determine how the property from a de facto relationship should be divided ?

As is the case with married couples who have separated, there is no specific formula used to determine how to divide the property from a de facto relationship. The general principles that are applied to determining the distribution of property following the breakdown of a de facto relationship are the same as those that are applied to the distribution of property following the breakdown of a marriage. A more detailed explanation of those principles can be found here.

 

The way your assets and debts will be shared between you will depend on the individual circumstances of your family. Your settlement will probably be different from others you may have heard about. However, in broad terms the approach of the Court to determining the division of property from a de facto relationship consists of the following:

 

  • The Court will decide what assets and liabilities the parties have, generally as at the date of the Court hearing, and the values of those assets and liabilities. By doing this, the Court is able to determine what the ‘Property Pool’ available for distribution consists of.
  • Having made a determination of what the ‘Property Pool consists of, the Court will then look at the direct financial contributions by each party such as wage and salary earnings, as well as the indirect financial contributions by each party such as gifts and inheritances from families.
  • In addition to financial contributions, the Court will also look at the non-financial contributions to de facto relationship, such as caring for children and homemaking.
  • After making a determination of the financial and non-financial contributions to the Property Pool, the Court will also take into account the competing future needs of each of the parties, including things like age, health, financial resources, care of children and ability to earn.
  • Finally, the Court will look at the practical effect of the distribution of property based on contributions and future needs, and then decide whether that distribution would be ‘just and equitable’. If it would not be ‘just and equitable’, the Court has the discretion to make a further adjustment in favour of one of the parties.

Time limit to apply for a de facto relationship property settlement

There is no requirement for parties to a de facto relationship to wait a minimum period of time before applying to the Court for a property settlement and/or spousal maintenance, and an application can be made to the Court as soon as the relationship has ended.

 

However, you must apply to the Court for a property settlement or spousal maintenance within two years of the date of your separation. There are exceptions to this general rule. So, if you are considering applying for a property settlement following the breakdown of your de facto relationship, but you separated more than two years ago, you should contact us as soon as possible to see whether you may still be able to bring that application.

Tailored Expert Family Law Advice

Whilst this article is intended to provide a general overview of the process that a Court may adopt when deciding how to deal with the family home, each cased turns on its own facts, and there are a number of factors that can significantly impact on the Court’s decision. At Frigo James Legal Group we can provide you with expert family law advice that is tailored for your circumstances. Contact our experienced Gold Coast family lawyer Mr Andrew James today to arrange your initial consultation on 07 5621 3799 or info@fjlegal.com.au.

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