Another important consideration must be to consider your personal circumstances and current relationships.
Most people are unaware that important legal consequences could follow if you are entering into a de facto relationship, getting married, or having an affair.
It is clear to most that marriage creates legal consequences but this is also true for de facto relationships and even affairs.
When clients who are married or in a de facto relationship, and have had an affair at work, they may come to seek legal advice as the relationship has broken down.
However, they have not been fully informed of the consequences flowing from their actions, and how that impact upon the advice they may receive as a result of the breakdown of the relationship.
So, what is a de facto relationship?
In the past, what constitutes a de facto relationship, and the legal implications which arise as a result of being involved in a de facto relationship, have been widely defined and have varied between states and territories within Australia.
These include definitions contained in Commonwealth or territory legislation, including but not limited to the Family Law Act 1975 (Cth) and the De Facto Relationships Act 2011 (NT). However, most definitions include that a de facto relationship is a relationship between:
• Two adults (over the age of 18 years);
• Who are not legally married to each other; and
• Are not related by family; and
• Having regard to all the circumstances of their relationship, they have a relationship as a couple living together on a genuine domestic basis.
The law that currently applies to de facto relationships has largely rectified these past inconsistencies in the law. Under the current law, certain persons leaving an unsuccessful de facto relationship can pursue property settlements in much the same way as married couples who have separated, relying on the same law and using the same court systems (excluding Western Australia).
This includes same sex de facto couples and couples who may not necessarily have lived together during the relationship.
The family law court will consider the tenure of the relationship, the financial dependency on the parties and the public reputation of the relationship.
Taking all the above into consideration, you may in fact be in a de facto relationship which can have legal and financial consequences.
What can you do to protect yourself?
You may wish to enter into a binding financial agreement to prevent future disputes and create certainty.
By entering into a binding financial agreement (BFA), more commonly known as a prenuptial agreement or ‘pre-nup’, you can determine before commence a relationship (whether to marry, or to live together as de facto couples) how your assets will be allocated should your relationship break down, and you prevent any financial or property dispute from ending up in Court.
Prenuptial agreements law can be found within the Family Law Act 1975 (Cth). If you and your future partner/ spouse wish to make a prenuptial agreement in Sydney, we can ensure that it is binding and legal in accordance with the law.
What are the consequences if you commenced the relationship without a BFA?
Binding financial agreements can also be made during a relationship/ marriage, and upon the breakdown of a relationship/ marriage.
At Watts McCray, we specialize in prenuptial agreements and other financial agreements for couples who want their individual and shared interests to be similarly protected.
Importance of considering a BFA
For those people who have been in unsuccessful relationships before, or who perhaps have significant wealth prior to entering into a relationship/ marriage, or who simply desire the certainty of knowing they will not end up in Court fighting over the division of assets if a relationship does not work out, well drafted prenuptial agreements by lawyers can be very useful and welcomed legal documents.
If you are a business owner, a BFA is something that you should consider entering into as a relationship breakdown could have significant consequences for your business.
The business may be an asset that has to be divided in any property settlement following a breakup of the relationship.
Therefore, it is essential owners to turn their mind to considering whether a BFA is something that they should enter into to protect the future of their business.
For further information contact Watts McCray on 02 9680 6800.
