A practical guide to cohabitation agreements in Australia
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What is a cohabitation agreement?
A cohabitation agreement (also called a "living together agreement" or "cohabitation contract") is a legally binding agreement made by unmarried couples who live together in a de facto relationship. It outlines how property, finances, debts, and other assets will be handled during the relationship and if it ends.
In Australia, cohabitation agreements can be recognised as Binding Financial Agreements (BFAs) under the Family Law Act 1975. Like prenuptial agreements, they must meet strict legal requirements including independent legal advice for both parties to be valid and enforceable. Think of it as creating financial clarity and protection for couples who choose to live together without marrying. It provides certainty and can prevent costly disputes later.
Key benefits of cohabitation agreements
A well-drafted cohabitation agreement can protect existing assets like property, businesses, or inheritance while helping you avoid costly court disputes if you ever separate. It clarifies expectations about financial contributions, living expenses, and household responsibilities.
It can also help protect you from your partner's debts and establish clear ownership of assets acquired during the relationship. Many couples find that discussing a cohabitation agreement actually strengthens their relationship by encouraging open conversations about money, responsibilities, and future goals.
How LawConnect can help with your cohabitation agreement
Our AI legal assistant can answer your cohabitation agreement questions instantly whether you're wondering if it's right for you, what it should include, or how to protect your assets as an unmarried couple. Get personalised information based on your specific situation, available 24/7.
If you're in Australia, we can also connect you with a licensed family lawyer who can draft or review your agreement, ensure it complies with the Family Law Act, provide independent legal advice, and protect your interests with enforceable terms.
Common scenarios we help with:
You're living together and want to protect assets you brought into the relationship
You're buying property together and want clarity about ownership
You want to establish how living expenses and household costs will be shared
You want to protect yourself from your partner's debts
Frequently Asked Questions
Yes, cohabitation agreements can be legally binding in Australia if they're recognised as Binding Financial Agreements under the Family Law Act 1975. To be valid, both parties must receive independent legal advice and follow proper legal formalities. The agreement must be in writing, signed by both parties, and properly witnessed. Our AI legal assistant can explain what makes a cohabitation agreement binding, and we can connect you with a family lawyer who can provide legal advice when needed.
Costs typically range from $1,500 to $5,000+ depending on complexity and whether negotiations are involved. Simple agreements cost less, while complex situations involving businesses or significant assets cost more. Each party needs their own lawyer for independent legal advice, so you'll pay for two sets of legal services.
Work with a family lawyer who understands de facto relationships and the Family Law Act. Both parties must receive independent legal advice for the agreement to be binding. The lawyer will ensure all legal requirements are met and that your interests are properly protected. Our AI legal assistant can help you prepare for meetings with lawyers, and we can connect you with experienced family lawyers who specialise in cohabitation agreements.
Yes, courts can set aside cohabitation agreements in certain circumstances. This might happen if the agreement was signed under duress, if one party didn't receive proper legal advice, or if the agreement is unconscionably unfair. Courts will also consider whether circumstances have changed significantly since the agreement was made. Having a well-drafted agreement that follows all legal procedures reduces the risk of it being overturned.
Whether you need one depends on your circumstances. Consider a cohabitation agreement if you have significant assets, own property together, have different income levels, own a business, or want clarity about financial arrangements. Even couples with modest assets might benefit from the certainty it provides. Our AI legal assistant can help you weigh the pros and cons based on your specific situation, and we can connect you with a lawyer for advice.
Yes, in Australia, both parties must receive independent legal advice from separate lawyers for a cohabitation agreement to be legally binding. This isn't just recommended, it's a legal requirement under the Family Law Act. Attempting to create an agreement without proper legal advice will likely result in an invalid agreement.
No, cohabitation agreements don't need to be notarised in Australia. However, they must be properly signed and witnessed according to the requirements of the Family Law Act. Each party must sign the agreement, and the signatures must be witnessed by someone who is not a party to the agreement.
A comprehensive cohabitation agreement should cover property ownership and division, financial contributions to household expenses, responsibility for debts, arrangements for pets, and what happens if the relationship ends. It can also include provisions for spousal maintenance, inheritance arrangements, and how disputes will be resolved. Our AI legal assistant can help you understand what provisions might be relevant to your situation.
You should get a cohabitation agreement through qualified family lawyers who understand de facto relationships and the Family Law Act. While templates exist online, they're often inadequate and may not be legally binding. Professional legal help ensures the agreement meets all requirements and protects your interests. Our AI legal assistant can provide information about the process, and we can connect you with experienced family lawyers.
In Australia, cohabitation agreements must be in writing and properly executed to be legally binding as Binding Financial Agreements. Verbal agreements or implied understandings are not sufficient under the Family Law Act. The agreement must meet specific formal requirements including independent legal advice, proper signing, and witnessing.