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Defacto relationship separations and property settlements: what you need to know

Property Settlements and De Facto Relationships – Why Even Informal Relationships Can Create Legal Risks

Have you lived with your partner for a while without getting married? Do you share a home, money or children, but think it’s too casual to be considered a “relationship” in the legal sense? You may be in a defacto relationship and, if you relationship ends, you may be at risk of a property settlement.

If so, you could be exposed to a property settlement claim – even if the relationship didn’t feel serious or formal to you.

Many people are surprised to learn that defacto relationships carry the same legal obligations as married relationships when it comes to property division under the Family Law Act 1975. That means your former partner could claim a share of your assets – including your house, superannuation or business – after a breakup.

This article explains how defacto relationships are defined, what property settlements involve, and why you shouldn’t assume you’re “safe” just because you didn’t walk down the aisle.

What Is a Defacto Relationship?

Under Australian family law, a defacto relationship exists when two people (regardless of gender):

  • Have a relationship as a couple; and

  • Live together on a genuine domestic basis; and

  • Are not legally married to each other.

You don’t need to call each other partners. You don’t need to have a joint bank account or live together 100% of the time. If you shared your lives in a way that looked and felt like a domestic partnership, the law may recognise it as defacto.

Warning: It’s Not About What You Called the Relationship

Even if you thought the relationship was “casual,” the court might see it differently.

The Family Court considers a range of factors when deciding whether a defacto relationship existed, including:

  • The length of the relationship

  • Whether you lived together, and for how long

  • Whether you had a sexual relationship

  • How you shared financial responsibilities

  • Whether you owned property together or separately

  • Whether you had or raised children together

  • Whether your family and friends considered you to be a couple

  • The level of commitment and mutual support

You don’t have to meet all of these criteria – the court will weigh them as a whole. A short relationship could still qualify if there was financial interdependence, cohabitation, or shared parenting.

Can My Ex Make a Property Claim?

Yes – if the relationship meets the legal definition of de facto, your former partner may apply to the Family Court for a property settlement.

To be eligible, one of the following must apply:

  • The relationship lasted at least two years, or

  • There is a child of the relationship, or

  • One party made substantial contributions (financial, non-financial, or as homemaker/parent), or

  • The failure to make an order would be seriously unjust

If any of these apply, the court can deal with your matter in the same way as it would a married couple’s property settlement.

What Is Included in a Property Settlement?

A property settlement divides the combined assets, debts, superannuation and financial resources of both partners.

This can include:

  • Real estate (including homes owned before the relationship)

  • Superannuation

  • Bank accounts

  • Businesses or trusts

  • Vehicles, shares and investments

  • Debts (including mortgages and credit cards)

Important: Your Assets May Be At Risk – Even If You Owned Them Before the Relationship

People often think that because they bought property before the relationship, it’s protected. However, contributions made during the relationship – financial or non-financial – can entitle the other party to a share of the asset pool.

For example, if your partner moved into a home you owned and helped pay bills or raise children, the court may consider that a contribution to the asset.

Risks of Not Formalising a Property Settlement

Even if your breakup was amicable, not formalising a property settlement leaves you legally and financially vulnerable. Here’s why:

1. Your Ex Could Make a Future Claim

You might think everything is “sorted” verbally, but unless your agreement is legally documented, your ex can come back months or even years later and make a claim.

This includes claims against:

  • Your current property or savings

  • Superannuation

  • Businesses you build after separation

  • Inheritance you receive after the breakup

2. You Could Be Liable for Post-Separation Debts

If your name remains on a joint loan, mortgage, or credit card, you could be pursued for debts your ex racks up after you’ve split.

3. Changes in Life Circumstances Can Cost You

If you come into money or grow your business after the relationship ends, and you haven’t formalised a settlement, you’re still exposed. A claim can succeed years after separation if it meets the court’s criteria.

How to Protect Yourself

To protect your financial future, you should:

  • Get legal advice early, especially before buying property, starting a business, or combining finances

  • Formalise the property settlement with a Binding Financial Agreement or consent orders

  • Don’t rely on verbal agreements – they’re not enforceable

  • Act quickly after separation – strict time limits apply

You generally have 2 years after the end of a de facto relationship to file a property settlement claim. After that, you need special permission from the court, which is not guaranteed.

How Swanwick Murray Roche Can Help

At Swanwick Murray Roche, we regularly advise clients in Rockhampton and Central Queensland on complex de facto relationship matters. We can help you:

  • Assess whether a de facto relationship legally existed

  • Understand your rights and entitlements

  • Negotiate and formalise a property settlement

  • Protect your assets with Binding Financial Agreements

  • Navigate family court proceedings if needed

We also deal with business interests, trusts, and superannuation splitting, which are often overlooked in informal arrangements.

Don’t assume you’re not at risk. Speak to an experienced family lawyer today to avoid costly mistakes.

Disclaimer

This article contains general information only and is not legal advice. You should seek advice tailored to your circumstances from a qualified legal professional.

Book a Confidential Appointment Today

If you’re unsure where you stand after a breakup or want to protect yourself against future risk, get in touch with our Family Law team at Swanwick Murray Roche.

📞 Call us on (07) 4931 1888

Secure your financial future. Get trusted legal advice from Rockhampton’s family law experts.