The Australian newspaper chats to Gillian Coote about the costly myths that can leave de facto couples financially exposed in a breakup.

De facto couples have surged in number in recent decades, as have their court battles, and family law specialists say many are being stung financially by believing in common myths.

Living apart 

Coote Family Lawyers managing partner Gillian Coote said people can still be considered to be in a de facto relationship even if they were not living together permanently.

“The main myth is that if you don’t live in the same house, you’re not in a de facto relationship,” Ms Coote said.

“Once you get to a year and a half you better talk to us because if it is a serious relationship, you ought to be thinking about how you are going to deal with your assets.”

Ms Coote said de facto partners who split up often became angry about asset distribution because they  didn’t realise they were in a de facto relationship.

“A lot of people say ‘what do you mean it was a de facto relationship and I have split my property with her or with him'?"

How to protect yourself 

Ms Coote said a de facto relationship can be concluded by a Binding Financial Agreement (BFA) rather than a court order.

She said many people are afraid to discuss BFAs with their partners. “It is terrifying, so I tell people to do it at the same time as they do their will.” 

“All you are going to do is make it worse if you leave it and avoid the issue. If you introduce the concept five years down the track, you’re likely to be met with hostility.”

Ms Coote said de facto relationships give rise to spousal maintenance obligations.

“As soon as you have someone who’s dependent, you are really over a barrel,” she said.

You can read the full article in The Australian here: Common myths that can cost de facto relationships their assets in a breakup

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