Key Points
- A de facto partnership is an institution, recognised in Australia as having the rights and obligations of marriage.
- A de facto partnership can be registered, but a minimum of 2 years is required to establish the genuine relationship in most cases.
- Try not to let emotions get in the way of an amicable separation and division of assets.
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"Emotions are high and can cloud the mind when you separate with your partner. It's important though to set aside emotions when you're dividing your assets," family law attorney Florante Abad shares.
'It is an institution'
"In the Philippines, de facto is basically a live-in partnership, without being solemnised with all the formalities of marriage and no intervention of a marriage minister."
While live-in partnerships in the Philippines don't enjoy the same benefits as marriages, de facto partnerships in Australia are recognised.
"Here in Australia, de facto is recognised as an institution. Partners have the same rights and obligations as married couples. The parties are recognised as genuine partners."
While some opt to register their partnerships, recognition can still occur as long as the couple has been together for at least two years.
"If you have kids, it can be before two years. It depends on the couple's situation, but the default position is at least two years.
"Even without registering your relationship, you can prove it through other things like having common children; living in the same house; conjugal property or property in both your names; attending social functions together; and introducing yourselves to others as partners."
Dividing assets
If a de facto partnership disintegrates and common assets need to be divided, Abad shares that it is best to settle things amicably and out of court.
"If ever your partner wants to buy you out, make sure the correct value of the property is determined. This is the starting point of the negotiation.
"They can always get the help of a mediator or a counsellor. They can avail the intervention of an expert trained in matters like this.
"Worse comes to worst and an agreement cannot be reached, then the court will decide for them. Typically, the decision will be is selling and dividing proceeds after settling the costs of the proceedings."
Disclaimer: This article is for general information only. For specific financial advice, you should consider seeking independent legal, financial, taxation or other advice to check how the information here relates to your unique circumstances.
