NSW When are We Considered De Facto?

[cj_stpatrick]

Hi all

Hoping I can get my questions answered as I have been getting some conflicting information online.

Situation:

I met a girl in October 2016, and dated for a while but started a relationship in early January 2017. She started to stay over at my place full time since then (January 2017) while still renting elsewhere.

In June-2017, her rental agreement lapses and she wants to move in with me. She is signing a rental agreement with me. All of our finances separate - separate bank accounts, we even shop and cook separately.

Property situation:

I own the property with 80% of it on mortgage under my name. The property is solely under my name - I pay for all strata, council rates, water service charges, etc. I own the property since June 2016, the deed and mortgage loan is all under my name

Question:

Getting a Binding Financial Agreement - will that work to protect my asset - as I don't want to mix my finances with such a new relationship?

How much should it cost for this situation, as I was quoted $3500 - $5000 to get one done?

At what point are we considered "de facto"? At what point can she legally make any sort of claims to my property?

Let me know if you need any further details on the above?

Thanks!

 

[Rod]

At what point are we considered "de facto"?

At what point can she legally make any sort of claims to my property?

2 years (ie Dec 2018)

A properly drafted BFA will provide some protection. A poorly drafted BFA is a waste of money, you'd be better off not having one.

Can't comment on costs and not appropriate for me to do so without knowing all the details. You're not just paying to have words on a page, you're also paying for the education and ongoing expenses all lawyers incur (office rent, insurance, continuing legal training, staff etc). It is not exactly cheap staying a lawyer these days.

 

[cj_stpatrick]

2 years (ie Dec 2018)

Thanks Rod.. but is this real - even with me charging her rent with official rental documents, and me declaring that as income and paying taxes on it? And she contributed to nothing other than normal rent and her fair share of bills (e.g. internet, water, power and gas usage).

Will judges still say she is somehow entitled to claim my property? And if yes, do you know to what extent?

I basically want to know if I really have anything to worry about - or am I just freaking out for no reason? On one hand, I'm not ready to commit to that level with anyone yet - let alone someone I only just met! At the same time, Sydney is expensive! Renting out half my room to someone I'm dating seems like a good idea - but not if she can take my whole house away if things don't work out!

 

[Rod]

If you are sharing a bed and going to the same social and family functions you are de facto. Many people have tried to do what you have suggested and the courts are well aware of attempts to re-categorise a relationship based solely on finances. Doesn't work. Courts do not recognise a 'friend-with-benefits' relationship.

 

[cj_stpatrick]

If you are sharing a bed and going to the same social and family functions you are de facto. Many people have tried to do what you have suggested and the courts are well aware of attempts to re-categorise a relationship based solely on finances. Doesn't work. Courts do not recognise a 'friend-with-benefits' relationship.

Hmm you’re right - that makes sense. Thanks for that. Okay in this specific case, with no other additional info, how do the court fairly determine her portion of the property?
I mean, since she’s only paying rent - what real claims can she really make? If she tries to say homemaker duties - how do the court determine what’s just normal everyday chores vs actual real homemaker contribution?
And also every girl will always claim some form of abuse as well to get more - and men basically can’t defend against that - what do people do?
In this case - is it a likely the usual unfair 50:50 split? If so, I guess I might as well get her to start paying my mortgage too right? What’s the point of separating if the courts won’t separate it when it matters?

 

[Rod]

Can't give individualised advise in matters like this. Each case is different and each judge can apply different weighting to the facts as they apply the law.

You call it rent, a judge will likely call it a mortgage contribution.

Generally on day one each party has their own contribution (starting point). Can be 100:0 or 55:45 at the beginning and over time proportions change so after, say 40 years and you're both retired and in good health it might be 50:50. Many things can happen along the way. Your G/F might win lotto, you might inherit $5M. Too many variables to give an accurate indication.

If you are so afraid of losing your property get a BFA done.

 

[cj_stpatrick]

If you are so afraid of losing your property get a BFA done.

Okay, that's really good to know - thanks Rod for your advice - I really appreciate it.
I'm a bit sad that there's so much about the law that is unfair that I have to do things like get a BFA.. I know the law is there to protect people but I've seen so many things go totally the wrong way for the person with more money (men or women.. the one who worked harder) get screwed over by their cheating partner and it's like... whaaaaaaatttt...
The law needs to change but in the meantime I'll need a BFA..

Thanks Rod! That was super helpful!

 

[sammy01]

Different point of view... We decided against a BFA...
WHY? well one solicitor said he doesn't do them... He explained that NOTHING is binding. So it doesn't stop her down the track appealing it and if it is deemed to be unfair for what-ever reason it can get torn up... BUGGER... And if anything changes, say you get married, have a kid, buy a property together... The things starts sinking...

Stay calm... I reckon the law is pretty fair... Let me summaries.
2 yrs before defacto - so there is a two year try it before you buy it clause.... Wish they had that for new cars...
After 2 yrs - you kinda sorta both have a claim on each other. But not automatically 50/50 split of assets. Not even close. So when my first marriage ended after 7 years, my ex's inheritance from before we were married Fair enough too....
Now after 10 years with no kids - then a straight 50/50 of all assets including super is a likely scenario. and a 10 year old BFA ain't gonna help...

Once you acquire property together, or get married or have a kid the whole scenario changes. You can choose not to buy property with her. You can choose not to marry.
Best cheapest way to protect your assets? condoms.

 

[Tim W]

https://www.lawanswers.com.au/threa...otect-my-non-marital-status.11569/#post-41250