A member asked over 7 years ago

De facto relationship separation

Hi. When in a de facto relationship separation where a house is in dispute, where the breakup was say just over the de facto two year period, what is the correct way of splitting this asset based on current market value etc? Is it as straight forward as a 50/50 split of value, or is it based on amount contributed by each party initially?

Law Advisor Research Team
Researchers at LawAdvisor

Hi there. When a couple separates, it will be necessary to determine how their assets and liabilities are divided, including the proceeds from the sale of any property owned by both parties. Couples are free, and must first attempt, to negotiate the division of property between themselves and try to reach an agreement without involving the courts. If an agreement can be reached, and requires formalisation (i.e. make it legally binding and enforceable), the Family Court can issue consent orders on application. However, if an agreement cannot be reached, the Family Court can also issue financial orders to decide the appropriate division of property.

Given that your de facto relationship lasted for at least two years, you can apply to the court to have the division of property determined and enforced. The court, in reaching a decision, will take into account the initial amount contributed by each partner to the purchase of the property, as well as the direct and indirect financial contributions of each partner to the relationship, non-financial contributions, and the future needs of each partner.

There is no presumption that the property should be split 50:50. The court's decision will be one that the court considers to be just and equitable based on the facts and circumstances of your case. Given that there is no set formula used, while the court may ultimately settle on an even split, the exact outcome cannot be predicted.

Suggested way forward

You should consider speaking to a family lawyer about how to manage your property division and what would happen if you were to take the matter to court. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.

Answered over 7 years ago   Legal disclaimer

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