Financial Agreements for De Facto Couples

De facto couples have the same rights — and risks — as married couples

Many people assume that Australian family law property provisions only apply to married couples. This is not the case.

Under the Family Law Act 1975, de facto couples — couples who live together as a couple on a genuine domestic basis — are entitled to apply to the Family Court for property orders in the same way as married couples. The same rules about contributions, financial and non-financial, apply.

This means that de facto couples face the same financial exposure on separation as married couples — and the same tools are available to manage it.

What makes a relationship de facto?

There is no minimum time requirement to be considered in a de facto relationship under Australian law, though the duration of the relationship is one factor courts consider.

Courts look at a range of circumstances: whether you live together, the nature of your financial arrangements, whether you hold yourselves out as a couple, the care of children, and the degree of mutual commitment. No single factor is determinative.

Importantly, you do not need to live together full-time to be in a de facto relationship. Couples who maintain separate residences but are genuinely committed to each other may still be considered de facto.

BFAs are available to de facto couples

Part VIIIAB of the Family Law Act provides for financial agreements between de facto couples — both before and during the relationship.

The process and requirements are essentially the same as for married couples: both partners must receive independent legal advice, certificates must be signed, and the agreement must be in writing. The legal structure and enforceability standards are the same.

Premuply's process is available to both married couples and de facto couples planning their financial agreement.

When de facto couples should consider a BFA

The situations that warrant a financial agreement are the same for de facto couples as for married couples:

• One partner owns property • There is a significant difference in assets • A business is involved • Family gifts or inheritances are part of the picture • Children from prior relationships are involved • The couple wants financial clarity from the beginning

In some ways, the case for a financial agreement is stronger for de facto couples, because many people underestimate the legal exposure that comes with a de facto relationship. A financial agreement removes that uncertainty.

Timing for de facto couples

For de facto couples, there is a question about when to prepare the agreement. If the agreement is prepared before the de facto relationship begins in earnest, the technical requirements may differ from an agreement prepared once the relationship is established.

Your lawyer will advise on how to time and structure the agreement to best reflect your situation. The important point is not to delay: the later you prepare the agreement in a de facto relationship, the more complex the financial picture tends to be.