Non-Cohabiting Claim
The client is involved in a romantic relationship of approximately one year and resides in a city in New South Wales. They share expenses related to food and activities but live separately without any formal agreements regarding finances or other aspects of their relationship. They have concerns about their situation being considered a de facto relationship under Australian law, although they have never lived together and share expenses equally. There are no shared assets or joint purchases, and the client is not currently seeking legal documentation or advice. They express a willingness to live together in the future.
Questions about this case
These answers have been verified by a lawyer in the LEAP networkWhat are the potential legal implications of sharing expenses in a romantic relationship without living together?
Sharing expenses in a romantic relationship without cohabitation generally does not create significant legal obligations under Australian law unless certain elements of a de facto relationship are present. However, if both partners equally share expenses and plan to live together, this could raise concerns about influencing future claims. Currently, since there are no formal or informal agreements, shared assets, or joint purchases, financial relationships remain separate. If circumstances change, considering formal agreements could help avoid potential disputes.
Could our shared expenses be considered as forming a de facto relationship under Australian law?
Under Australian law, a de facto relationship typically involves living together on a genuine domestic basis. While the partners are not currently living together, concern is valid as the Family Law Act considers factors such as the nature of the relationship and financial interdependence. Sharing expenses equally and spending significant time together can contribute to the perception of a de facto relationship, but it is just one factor. Planning to live together may be prudent to be aware of implications associated with a de facto status.
Are there any legal steps I should take to protect my financial interests in case the relationship ends?
To protect financial interests, consider keeping detailed records of shared expenses and contributions. While living separately, financial arrangements and the relationship duration could lead to claims of a de facto relationship under Australian law, impacting property and financial claims if the relationship ends. It's advisable to maintain separate financial accounts and document shared expenses clearly. If planning to cohabit in the future, a cohabitation agreement can outline responsibilities and expectations.
How would our situation be viewed if we decided to live together in the future, regarding property and financial claims?
Deciding to live together could classify the relationship as a de facto relationship under Australian law, impacting property and financial claims if the relationship ends. The Family Law Act outlines that de facto partners may have similar entitlements to married couples, such as property division and spousal maintenance. Factors like duration of cohabitation, financial interdependence, and shared living arrangements can influence these entitlements. It's prudent to consider creating a financial agreement to safeguard interests.
Is there any legal documentation we should consider creating to clarify our financial and personal relationship boundaries?
To clarify financial and personal boundaries, consider creating a cohabitation agreement. Although currently living separately, such an agreement can outline how to handle expenses and assets, both now and if deciding to live together in the future. This document can help manage misunderstandings about financial contributions or division of shared expenses and assets.