- I have been with my girlfriend for 2 years and we are both in out late twenties.
- She does not currently have any savings or assets as she is a poor student but she contributes financially where she can and is actively looking for work.
- We currently live together and pay rent
- I am currently working full time and own my house(which is solely in my name) which is currently being tenanted out, but we would like to move into it together within the next 6 months
- There is a small mortgage on the house but majority of it has been paid off by myself - through scrimping, saving and hard work
- We do plan on getting married and having children eventually down the track
- She is a beautiful humble woman and not some gold digging money lover
What are the implications if we were to break up our relationship or things didn't work out down the track?
Can she potentially take half of the house even if we aren't married?
The reason I ask is because I have worked hard for everything and although I trust her and love her, I've heard horror stories of guys losing the lot because of bad relationships and poor financial/legal advice. Even as per the last point, people can change over time and I don't want to get screwed over. I wouldn't bother asking but she is not bringing anything to the table, financially speaking, so I guess I need some re-assurance.
I'm not sure if people claiming assets are split 50% have ever consulted a lawyer.
The last time I spoke with a lawyer the law had been changed with respect to shared assets.
It used to be that the house was split 50/50 with a priority of tenancy going to the wife\mother due to child raising duties.
It's a silly law that assumed everyone has kids and women don't work, thankfully it was updated.
The advice I received was that
- only assets acquired since the beginning of the relationship may be split
- if you paid 75% of the house off before the relationship started, the partner has no claim to that 75% in the case of a split
- of the remaining 25% the court will look at who contributed financially and who contributed socially
- someone who 'makes a home' is entitled to a 50/50 split of the shared assets, if your partner does not do 'a clear majority' of the housework then it's purely a financial contribution decision
- if you each have your own car, the partner is not entitled to any of yours
- shared items like TV, fridge, washing machine are generally considered 50/50 if the items were purchased after the relationship began
- if you bought the TV and other house appliances before the relationship started, it's all yours
Thankfully Australia doesn't have alimony laws so you aren't required to pay to maintain someone else's lifestyle after a split.
Also remember that if someone is living in your house, you may want them to mark payments as board and not rent.
Board is a contribution to household expenses, not declared taxable income and does not entitle someone to a share of the property.
Rent must be declared as taxable income and may entitle a partner to claim a share of the property in proportion to mortgage payments.
IANAL, IANAA and am mentioning advice that has been given to me.
edit - Death is a completely different story, all assets pass to the partner unless a will specifies otherwise and even then could be overturned