If you’re in a long-term relationship, know your rights

PEOPLE are aware of their financial rights when divorcing, but what about de facto relationships?

De facto relationship break ups are not that dissimilar to divorce, financially speaking.

DID you know after two years of renting together your partner is entitled to half your assets?

Real estate expert and wealth development coach Zaki Ameer has seen couples go through financial hell all too often during a breakup because they didn’t know the law behind long-term relationships.

“If a relationship goes sour between two people who have been renting together for more than two years, both individuals are entitled to receive a percentage of their ex’s assets, whether they were purchased before or during their relationship” Mr Ameer said.

De facto relationship are defined by the Family Law Act as a couple of the same or opposite sex, living together on a genuine domestic basis.

Mr Ameer, who is also the founder of Dream Design Property, shared his top tips for avoiding breakup bankruptcy:

Know where you stand: If a couple is considered de facto, their financial matters are determined in the same way as married couples. Aside from living together for two years or more, a partnership is also classified as de facto if there is a child from the relationship, or if they have registered it under a prescribed law of a State or Territory. So if a person separates while in a de facto relationship, from a legal and assets perspective, they should be prepared to be treated as if they were married.

Be aware of strict time limits: It’s important to make a note in your diary of the date you separate. When it comes to dividing property, super, and other assets numerous time limits can apply.

For example the Family Court or the Federal Circuit Court can formalise your property arrangements but time limits of 1 or 2 years apply.

Calculate your assets within a week: As soon as you separate it’s crucial to list and value your assets, particularly investment properties. Calculate what each asset is worth and note any money that is owed on it. In this list, everything the two of you own together and individually, even super, should be included. This helps fast track the property and financial settlement.

Change names on mortgage/lease immediately: With a mortgage make sure you let your lender know of your separation in order to work out repayments. If you are staying in your home ensure that all utility bills are in your name only. This is the same for renting, however if you are renting you will need to contact the landlord or estate agent to change the lease so it reflects accurately the current residents. You can contact your State’s fair trading agency if you have any problems.

Sort out your banking as soon as possible: After your split it is crucial that you close any joint bank accounts or joint credit cards as your ex could still have access to your money. Open a new bank account in your name only and ensure you change any passwords or PIN’s they could have had access to, doing this reassures that only you have secure access to your income.