De facto relationships: How to protect your assets

Protecting your assets in a de facto relationship is a valid concern, especially if you want to ensure that your financial interests are safeguarded in the event the relationship ends. Here are some steps you can take to protect your assets in a de facto relationship:

Have a valid Financial Agreement

Consider creating a Binding Financial Agreement (BFA). This legally binding document outlines how you and your partner will divide assets and liabilities if you separate in the future. It can also address spousal maintenance and other financial matters.

Keep Your Finances Separate

Maintain separate bank accounts, investments, and financial assets. This can help establish a clear distinction between your individual assets and those jointly acquired during the relationship.

Maintain Financial Independence

Try to avoid commingling finances to a degree. As mentioned above maintain separate bank accounts and try to pay your expenses from your own income.

Document Your Contribution

Keep records of your financial contributions to the relationship, such as mortgage payments, bills, and significant purchases. This documentation can be essential in demonstrating your financial input if a dispute arises.

Update Your Will and Estate Planning

Ensure that your will and estate planning documents reflect your wishes regarding the distribution of assets. Be clear about who should inherit your assets if you pass away, especially if you want to protect assets for children from a previous relationship.

Regularly Review and Update Documents

Periodically review and update your financial documents, such as BFAs , wills, and estate plans, to ensure they accurately reflect your current financial circumstances and wishes.

Communication with Your Partner

Having open and honest communication with your partner is essential. Discuss your financial goals, expectations, and concerns. Consider reaching mutual agreements on how you will handle financial matters during the relationship.

Seek Legal Advice

It's important to remember that while these steps can help protect your assets, the legal framework around de facto relationships in Australia can be complex, and laws may change. Consulting with a qualified family lawyer is recommended to ensure that your assets are protected based on your specific situation.

At Orman Solicitors, we’re committed to delivering the highest quality legal advice and services. We pride ourselves on providing reliable, trustworthy services, unmatched legal experience and compassion and empathy in everything we do. No matter what your circumstances, our team always has the best interests of our clients in mind, and we’ll strive to be an advocate for you and your rights. If you’re looking for a trusted family lawyer in Sydney or Wagga Wagga, contact the team at Orman Solicitors today.

Disclaimer: The content presented in this article is offered for informational purposes and should not be construed as legal advice or a substitute for professional guidance. If you have questions or require legal assistance, we strongly recommend consulting with a Solicitor to address your individual circumstances.