VIC Partner Moving in - Legal Precautions to Take?

[Carlos]

Any opinions on my current situation?

My partner of 2 years (28F) will be moving into a property that I (27M) own with me. This will be the first time we are living together and whilst I am really excited, I would also like to approach it cautiously in case things go belly up.

She is renting currently and has no assets aside from a car /superannuation /savings.

I have spoken to a solicitor and I am meeting with her next week. She has advised to draft up a binding financial agreement, which would be quite a costly exercise (I know still a lot less than what I could potentially payout).

My question is what can I be doing in the interim to ensure that I am keeping my house solely as mine?

My plan is to;

- Keep finances separate
- Not have any joint assets

She (GF) doesn't want to feel like she is mooching off me so has suggested that either we go halves in bills non-related to home ownership or that she pay a fixed rental amount per month. I'm not as keen as I don't need the money and feel like it greys the area of home ownership.

Keen to get your thoughts. Hoping that any ideas you share I can then discuss with the solicitor when I visit her next week to have a more meaningful conversation.

Not sure if any further info is required. If so fire away.

 

[Rod]

... she pay a fixed rental amount per month

Bad idea. Same with rates. It may appear 10 years down the track that she has contributed to the house. I'd be telling her to save up and put down a deposit on her own property.

Household bills like electricity, gas, internet are different as they are 'consumables'.

Talk to your BFA lawyer about these issues.

 

[sammy01]

A different perspective to Rod.

Condoms...

See any legal agreement can be challenged. A kid changes the scenario enough to make a BFA challengable and the older the thing is the more likely to be challenged.

So what to do?

A rental agreement. That would be one option... But that could be challenged and while it is still a good idea, only offers limited protection.

Or

Trust the law. I know a bit crazy... But go with me for a minute... So from memory, you'd need to live together for 2 yrs before you'd be classified de facto.

Have a read...

De facto Relationships - Family Court of Australia

So you have a 2-year get out of jail free card. After that? Well, check out the letter (d) of the things a court would consider when making an order for assets to be divided... Your initial contributions would be factored in... So lets say you split up after 5 yrs. So you'd be defacto for 3 yrs given the 2 yr get out of jail free period...

Well, she could make a claim but your initial contribution would mean she'd be a long way from taking half your assets or any of them for that matter. She could have a claim for a portion of the assets / savings accumulated over the duration you guys lived together... But after 20 yrs, well that is a different story. Get back to us if you split up in 20 yrs...

But a child changes everything. Hence condoms... So while my story has a happy ending. I have kids love them to death... But condoms would have saved me from the financial pain you're worried about...

 

[Carlos]

Thanks for both your inputs.

From my initial call with the solicitor. She also flagged that for the first two years I should be pretty set as long as kids don’t come into play and that we keep financials seperate.

She actually suggested market rate rent was common and would not be viewed as contributions to the home as long as it was clearly stated in that way. That said I’m with rod here and feels it murks the water a little.

BFA’s seem to be redundant as soon as marriage happens and the solicitor mentioned that in cases where kids were involved that the court could and does go around them.

I have an appointment next week with the solicitor so will keep you posted on what they say

 

[Rob Legat - SBPL]

A BFA done in the de facto phase will cease if you get married, unless the BFA is made in contemplation of marriage.

 

[Rod]

BFA’s seem to be redundant as soon as marriage happens

A good BFA takes this in consideration.