Protecting Assets From A New Partner

When can a new partner apply for a settlement?

A partner can pursue a family law property settlement even without marriage, if a genuine de facto relationship exists — for example, if you have children together, the relationship is registered, one person made significant contributions, or other circumstances exist where denying a settlement would be unjust. There's a common myth that you must live together for two years to be a genuine de facto couple — that isn't the only test.

Pre-relationship assets aren't automatically excluded

If no binding financial agreement is in place stating otherwise, a property settlement may include property owned before the relationship began.

Two main protection options

A Binding Financial Agreement — a documented agreement specifying how assets divide upon separation, which can be executed at any stage of the relationship. Or financial separation without an agreement — based on Chancellor v McCoy (2016), courts consider factors like separate bank accounts, no co-owned assets, a partner paying rent or board only, minimal financial intermingling, no joint future planning, and no beneficiary nominations.

Protecting the family home

The family home is like any other asset and will likely be included in a family law property settlement. A common strategy is ensuring a new partner only pays rent or board at the going rate, and contributes nothing further financially or through labour.