de Facto Relationships

Are your contributions to a de facto relationship worth less because you are not married? The Full Court says “No”

In 2018, a Trial Judge of the Federal Circuit Court of Australia made Orders for a property settlement, in favour of the de facto husband. The outcome provided for the de facto husband to receive a significant adjustment of 75% of the pool of assets, and the de facto wife the remaining 25%.

In Whiton & Dagne [2019] FamCAFC 192, the Full Court of the Family Court overturned the decision of the Trial Judge, referring to his decision as a “‘leap from words to figures” insufficiently heralded by any reasoning”.

Dating or De Facto: What's the difference?

The Family Court and Federal Circuit Court have jurisdiction to deal with the property of de facto couples who have separated. Separated couples however may not be sure whether they are ‘entitled’ to a property settlement, depending on whether or not they were living with their former partner.

So, you may ask, what is the difference between a de facto couple, as compared to a couple who has been dating?

Lottery winnings and property settlements

Formalising a property settlement servers your financial ties and will prevent your former spouse from seeking an adjustment of property interests between you. If you have not entered into a formal property settlement, your former spouse may have a claim on your assets.