Is a Legal Financial Settlement Necessary After a De Facto Relationship Ends?

Question from Cor, Is a Legal Financial Settlement Necessary After a De Facto Relationship Ends?

Answer from AI:

When a de facto relationship ends, understanding your legal rights and obligations regarding financial settlements is crucial. This is especially true when there are shared assets, children involved, or significant financial contributions made by either party during the relationship. Given the complexity of family law, consulting with a legal professional for personalized advice is strongly recommended. However, here’s a general overview of what you might need to consider in your situation.

Understanding De Facto Relationships in Australia

In Australia, de facto relationships are recognized by the Family Law Act 1975, which provides that couples who have lived together on a genuine domestic basis are subject to certain rights and obligations upon separation. This includes the potential division of property and financial assets, even if the couple was never legally married.

Key Factors Considered in Financial Settlements

When determining the need for a financial settlement and how assets should be divided, the court considers several factors, including but not limited to:

• The duration of the relationship.
• The financial contributions made by each party (including income, property, and inheritances).
• Non-financial contributions (such as homemaking and parenting).
• The future needs of each party, including care of children.
• Any agreements made during the relationship regarding finances and property.

Your Specific Situation

Given the details you’ve provided, several points stand out that could influence the need for a legal financial settlement:

1. Shared Ownership of Property: The house purchased in October 2021 with both of your names on the title and different ownership percentages is a significant shared asset. This alone may necessitate a legal financial settlement to determine how this asset should be divided.
2. Separate Finances: While maintaining separate finances and bank accounts may simplify some aspects of the settlement, the court will consider the overall financial contributions to the relationship, including the purchase and maintenance of shared property.
3. Children and Custody: Although custody of children from previous relationships may not directly impact the financial settlement between you and your former partner, the presence of children and any child support arrangements can influence the court’s decisions regarding financial needs and obligations.

Can He Make Claims on My Assets or Money?

Yes, your former partner may be able to make claims on assets or money, especially if he can demonstrate that he made significant financial or non-financial contributions to the relationship or to the acquisition, conservation, or improvement of any shared assets. The fact that you have a shared property with unequal ownership shares further complicates the situation and could lead to claims being made.

Next Steps and Legal Advice

Given the complexity of your situation, the following steps are advisable:

• Consult with a family law attorney to discuss your specific circumstances and receive tailored legal advice.
• Consider mediation or collaborative law as a means to reach an amicable settlement agreement regarding the division of property and assets.
• Prepare documentation of all financial contributions and assets, including the house purchase and any other shared investments.

For more information on de facto relationships and property settlements, you can visit the Family Court of Australia’s website.

Remember, each situation is unique, and laws can vary significantly between jurisdictions within Australia. Legal advice from a professional familiar with Western Australia and New South Wales family law is crucial to ensure your rights are protected and obligations met.

This information is intended as a general guide and should not be considered specific legal advice.