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FAQ’s Living Together Cohabitation


FAQ’s – Living Together

How to protect your assets

Here is an example scenario which demonstrates how a financial agreement can protect assets that were owned prior to cohabitation.

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Will a pre existing cohabitation agreement still be valid even after you get married?

If you make the de facto agreement and then decide to marry it is not be the same as making a 90b prenuptial agreement. If you marry you have to sign a new agreement. Section 90SC(1) says that the new laws cease to apply if the parties to a de facto relationship later marry one another. In those circumstances, the more familiar provisions of the Act would govern the now married couple’s relationship.

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What happens if all the assets aren’t disclosed?

The parties have a duty of disclosure to the court as well as each other. If one party tries to hide Assets or liabilities that effect the other party the party could go to court and argue to have the agreement set aside.

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My partner and I will share all of our household and living expenses but he earns far more than I do. Does the agreement have to state our expenses are to be divided evenly

?

No, it is probably better to say that until such time as you become pregnant or a mother and unable to work, your contribution to expenses should be in proportion to your earnings.

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How much detail is required when we fill out the Assets and Liabilities schedules?

Financial agreements can be set aside for fraud (which essentially means non-disclosure of something that matters). Full and frank disclosure is fundamental if an agreement is to survive a legal challenge.

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