I think we would be lying if we said we didn’t think about what would happen with the assets if you split up with your partner after you had been together for some time…. Especially if you initially brought more to the table financially than your partner did. As someone who is getting married, as much as I love my partner and know that we will be together forever and a day, these things still have crossed my mind.
I read an interesting insert by Lindsey Mills from Rainey Colins Lawyers which got me thinking. Let me put this scenario to you as explained by Lindsey… Say Tania and Richard brought a home together and Tania put $100,000 more in than Richard towards the purchase. After a few years things turned messy and they separated and sold the family home. Richard claimed half for the home. He is entitiled to do this by law, but if Tania and Richard had signed a contracting-out agreement to agree that Tanias contribution was her own separate property, this would not have happened. Under the property (relationships) act 1976, if your married, in a civil union or have been living with your partner for 3 years or more (or shorter if you have a child together) than the assumption is if your separate, all assets are split 50/50, including the family home, cars or investments. However you can contract out of the legislation by putting in place a contracting-out agreement. This agreement lists the property you want to retain as your ownif your relationship ends. For example bicycles and CD collections, or just the larger assets like houses and your superannuation.
There is a saying “love conquers all”, just be careful and dont let it conquer your finances as well 😉
Happy house hunting