Here’s something I see all the time, and it still surprises people.
Two adults. Sensible. Switched on. In love. Want to spend as much time as possible together in the same space.
Maybe they think, “Rent is so expensive, why don’t we just half our costs and move in together?”
Under Australian law, that decision can be a major financial event. And most people don’t realise it until it’s too late.
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People still think there’s a bright line between “dating”, “living together”, and “married”.
Legally, that line barely exists.
Once a relationship is considered de facto, a breakup can trigger property settlements, superannuation splits and, in some cases, ongoing financial obligations. No ring. No wedding. No paperwork announcing you’ve crossed into this zone.
It just… happens.
Australian de facto law doesn’t work on neat rules. There’s no form you sign or ceremony that you need to do.
Instead, courts look back after the relationship ends and look at things like:
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How long you lived together
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Are there any children
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Whether you shared finances or supported each other
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How property was used
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Whether one person sacrificed earning capacity
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How you presented yourselves socially
There’s no single factor that decides it. Duration alone isn’t enough. And two years of living together is not a hard line, despite how often it’s quoted.
If I had a dollar for every time I heard these, I’d be writing this from a beach somewhere.
“The house was mine before we met.”
Assets owned before entering into a relationship can still be subjected to a split after separation.
“We kept our finances separate.”
Living together is already a form of financial interdependence.
“We didn’t want to get married because we didn’t want the legal stuff.”
Ironically, you may have signed up for most of it anyway.
These aren’t reckless people. Many are professionals, investors, business owners. But this isn’t talked about enough and it is so frustrating to see people repeatedly fall into the same mistake unknowingly.
If you know and understand this, and then enter into a relationship and move in together, then I have no bone to pick with you.
One example that we have dealt with this year involved a professional who owned a home and a small but growing business long before entering a relationship. The relationship itself was 7 years long, and there was no marriage.