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What’s the Difference Between a De Facto Relationship and Marriage?

What’s the Difference Between a De Facto Relationship and Marriage?

By Alternate Dispute Resolution, Family Law, Family Law Disputes

The De facto Relationship: Changing Face of Australian Families

Australian society has undergone significant change in many ways in recent decades.

Not only do we look a lot more diverse than we once did, but our definition of what constitutes a family is also very different to what we once understood by that term.

That change includes the rise of de facto relationships in preference to marriage. According to the latest Census, one in six Australians aged 15 or over now lives in a de facto relationship.

The significance of this change has been incrementally reflected in the law. But for some relatively minor differences, the rights and obligations of people in de facto relationships – whether man and woman or same-sex – are nowadays all but the same as married couples.

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How are de facto couples recognised by law

A de facto relationship is defined under section 44A of the Family Law Act 1975 as a relationship between two people, including same-sex people, who are not otherwise legally married or related by family and with regard to all the circumstances of their relationship, live together on a ‘genuine’ domestic basis.

This definition, however, is not applied uniformly across government bureaucracy or even in different pieces of government legislation.

Courts employ a four-point threshold test to evaluate a relationship as de facto:

  • That the parties have been in the relationship for at least 2 years;
  • that there is a child from the relationship;
  • that the relationship is, or was, registered under a prescribed law of a State or Territory;
  • that in assessing property or custodial claims resulting from a breakdown of the relationship, it is recognised that significant contributions were made by one party and the failure to issue an order would result in serious injustice.

Once a de facto relationship is recognised, the rights of parties closely resemble those of married couples. If one partner dies, for example, the other can:

  • Be entitled to a share of his or her estate;
  • receive funds under workers’ compensation, if the partner died at work;
  • access the partner’s superannuation;
  • claim social security.

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How courts approach de facto relationships

Like married couples, the need for the court to intervene to decide disputes in relation to children and/or financial settlements also exists when a de facto relationship ends.

While married people can show a marriage certificate as proof of their relationship, de facto relationships can be more difficult to establish. Commonly, a party to the relationship with more substantial financial resources will deny the relationship qualified as a de facto one in order to avoid any split of assets when the relationship ends.

In addition to the threshold factors listed above, the court will assess the relationship on the basis of a number of different factors, not all of which need to be present for the relationship to exist.

It should be noted that a de facto relationship can be established even when one party is legally married to someone else, or also in a de facto relationship with another person.

Other factors the court will take into account include:

  • Whether a sexual relationship existed between the parties;
  • the extent and nature of shared living arrangements;
  • the parties’ financial dependence on each other;
  • the mutual commitment of the couple to a shared life;
  • whether the relationship was recognised by others, such as family and friends, as de facto, and the couple presented themselves in that way;
  • ownership, use and acquisition of the parties’ property.

Evidence may be required to prove or disprove any of the factors listed.

Alternative dispute resolution

As it is for married couples, the Family Law Act mandates mediation, or alternative dispute resolution, before making an application to the court for orders.

Mediation offers a cheaper, faster and generally less stressful means for couples to resolve areas of disagreement and dispute between them.

An accredited mediator facilitates this session, where both parties are able to put their case before a process of negotiations takes place to narrow discord with the aim of finding a workable solution both parties can abide by.

Any agreement reached between the parties can then be presented to the court for consent orders to formalise its terms.

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Are there any other differences between marriage and de facto?

The other key differences between marriage and de facto relationships apply to the end of the union.

Those seeking a divorce in Australia must meet certain conditions, including that they are Australian citizens; have lived in Australia for the past 12 months and intend to continue living in Australia; have been separated for at least 12 months, and; if married for under two years, the parties need to have filed a counselling certificate after attending counselling.

Divorcees must then begin property or spousal maintenance proceedings within 12 months of becoming divorced unless an extension is granted.

By contrast, de facto couples do not need to do anything when the relationship ends. If one or both parties wish to go to court to get a property settlement, however, proceedings must be commenced within two years of the relationship ending.

Conclusion

While de facto relationships are treated similarly to marriage, some differences remain in how such a relationship is defined. Centrelink, for instance, consider a couple to be in a de facto relationship from the moment they start living together, while Australia’s migration law insists parties have been living together for a period of 12 months or longer.

Whether you’re married or in a de facto relationship, the expertise of family law legal professionals can be invaluable in helping you assess your options when a relationship breaks down.

If you would like to further discuss any of the issues raised in this article, contact our expert Sydney, Melbourne, Perth, Brisbane, Sunshine Coast Mediation team today. Mediations Australia exists to help people stay out of court and resolve their issues in a faster, cheaper and more effective way.

Getting legal advice early is the most important thing to do.

Sadly people often wait too long to get legal advice. Take advantage of our FREE consultation with a family law expert.
is mediation compulsory - Mediation Australia

Is Family Law Mediation Compulsory?

By Family Law, Family Law Disputes

Under Australia’s Family Law Act 1975, separated families must first undertake family dispute mediation before approaching the court for orders about parenting.

This requirement both helps the Family Court manage its workload and provides a more affordable, more accessible way for parties to a dispute about how their children will be raised come to an agreement of their own making.

Through mediation – also sometimes referred to as ‘alternative dispute resolution’ – an ex-couple can be assisted by a neutral third party who will help them discuss the areas on which they agree and those where they disagree to help find a middle ground as the basis for an agreement.

Below is more detail on how this process works but if you have any questions or concerns about family dispute resolution, contact us for detailed information today.

Thinking about separation or divorce?

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How does a mediation session work?

In many cases couples with children who separate are able to come to their own agreement on the living arrangements for the children, including issues about education, health, holidays and the myriad other issues a family must address.

An informal agreement between former partners can be given effect by being brought before the court and formalised as ‘consent orders’, with both parties then obliged to honour the terms of the agreement.

Where the above issues can’t be resolved between the parents, a family law mediator can be engaged. This person generally has specialist training and accreditation to perform the role. Acting as an independent third party, the mediator is there to facilitate discussion and negotiation, rather than lead or direct. If there is a history of family violence between the parties or a threat thereof, the practitioner is trained to handle this circumstance.

In most cases, both parties will meet at a neutral location, such as the mediator’s conference room or another mutually convenient venue, at a set time. The mediator will make an introduction and explain how the discussion will work, with both parties able to make their case detailing their wishes for the children.

The parties will then often split into separate rooms and employ what’s known as ‘shuttle mediation’ as the mediator goes back and forth between the parties to help refine the areas where compromise is possible.

While its possible for each party to have a legal representative with them, unlike in court lawyers are expected to provide support and advice at the appropriate time, rather than try and run the mediation process.

Ultimately, the aim is to achieve an agreement both parents can live with as a parenting plan. If agreed on, the mediator can create the plan in writing and have it dated and signed by both parents.

Any parenting plan should include detail on how it can be changed in the future and how disagreements can be resolved. Most people allow for the fact the plan will be subject to change as children grow older and become more independent.

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Children’s participation in the mediation process

Depending on their age, children may be included in the mediation process. In most cases, a special family consultant with experience interviewing children – who may or may not be the appointed mediator – is engaged to conduct interviews with children and then provide details of what they said back to the parents before their mediation.

The older a child is, the more likely their views will be taken into account in formation of a parenting plan or, later, by the court if the dispute cannot be resolved through mediation.

What happens if dispute resolution is unsuccessful?

Where the mediation process is unsuccessful, the mediator can issue a ‘Section 60I’ certificate so that the parties can then apply to the Family Court for parenting orders.

The certificate is issued to cover a number of circumstances, including that both parties attended and made a genuine effort to resolve the dispute. It can also indicate that one party did not make a genuine effort, that one party did not attend, that the mediator decided mediation was not appropriate in the circumstances (such as where family violence is present) or that the process could not be completed.

Need some information that relates to your circumstance?

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Exceptions to the dispute resolution

There are a few exemptions to the compulsory requirement for parties to mediation before applying to the court for parenting orders.

There are:

  • When the parties are formalising an agreement through ‘consent orders’;
  • where family violence or child abuse is a factor;
  • when one or both parties are responding to an application to the court;
  • where one party is unable to participate effectively (due to incapacity, geographical location or other factors);
  • where a person has contravened and shown a serious disregard for a court order made in the last 12 months.

The benefits of this form of dispute resolution

Applying to a court for orders in relation to parenting or other matters involved in a relationship separation is both expensive and time-consuming. Legal representation, court fees and delays in the matter coming to court are all issues to be considered.

By contrast, mediation is significantly cheaper, takes less time and empowers the ex-couple to come up with their own solutions to the difficult issues involved in parenting arrangements.

Provided each party approaches mediation with a civil, cooperative mindset and a genuine desire to create a workable parenting plan, family law mediation can avoid the need for the stress and time involved in going to court.

What Should You Do Now?

At Mediations Australia, we have a team of family lawyers and mediators who can assist you in Sydney, Perth, Adelaide, Melbourne, Brisbane, and all other locations in Australia. We also do international family law matters.

Getting legal advice early is the most important thing to do.

Sadly people often wait too long to get legal advice. Take advantage of our FREE consultation with a family law expert.
How Are Contributions Assessed in Family Law Matters?

How Are Contributions Assessed in Family Law Matters?

By Family Law

In the sad event that marriage or de facto relationship comes to an end, one of the most contentious areas when it comes to the disentangling of two lives is the property settlement.

In particular, the issue of contributions by each party to the relationship can become a common sticking point in any division of assets and liabilities. Contributions can consist of both financial and non-financial inputs into the former union.

There is no set formula for assessing these contributions – each case must be assessed on its unique circumstances to achieve a just and equitable division of property between the parties.

This article provides some more detail on how contributions in a relationship are assessed by a court but if you are at the stage where a property settlement is required to properly end a former relationship, contact Mediations Australia as soon as possible.

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More detail on contributions

As we’ve mentioned, contributions considered in an asset pool as part of a property settlement can be both financial and non-financial.

Financial contributions: In a relationship, these may be direct or indirect in the acquisition, conservation or improvement of any property of the parties. Financial contributions before, during and after the marriage or relationship may be considered.

One party may have property when they enter the relationship, for example. Whether this property becomes part of the asset pool to be divided in a property settlement will depend on how the property is used during the relationship and what contributions to the property the other party makes.

During the marriage, an inheritance received by one spouse, for example, will generally be considered part of the asset pool. As will career assets such as income, superannuation, long-service leave or a redundancy payment, as well as shareholdings.

In relation to property acquired after a separation, the interest of the ex-partner who owns the property is balanced against the other partner’s contribution to it before deciding whether it is added to the asset pool. Another method of assessment takes a broader approach and looks at all contributions made by the ex-partner (the one who doesn’t own the property) to common matters between the parties.

Under section 79(4)(a) of the Family Law Act 1975, the court must assess both direct and indirect financial contributions. An example of a direct contribution is a lump sum paid against a mortgage, while an example of an indirect contribution is the use of earnings to meet household expenses. The court often deals with the situation where one party to the relationship pays the mortgage and the other meets household expenses from their earnings, complicating the assessment of how much each party contributed to the acquisition, conservation or improvement of a property.

Non-financial contributions: Examples of these contributions include where one party to the relationship has improved the family home by using their own labour (renovating, painting, gardening, landscaping, e.g.), as well as their contributions as a parent and a homemaker.

These have come to be seen as no less important than financial contributions in family property settlements. Evidence of these contributions will be assessed by the court and given a percentage value, which is then added to the overall contribution that the court believes each party made to the relationship.

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How is this information used?

The assessment of contributions to the former relationship is one question in a number the court asks to determine a property settlement.

The court first determines the assets and liabilities of the parties to the relationship to form an asset pool for division; assesses the contributions of each party; assesses the ‘future needs’ of each party, and finally asks whether the proposed division of property and assets is ‘just and equitable’.

It’s important to note that when assessing contributions, the length of a relationship can be a significant factor. Where a couple were together for five years or more, the court will take a more holistic view of how assets from the relationship were acquired and maintained – more recent contributions may be allocated greater weight than older or initial contributions due to the passing of time ‘blending’ an ex-couple’s interests.

In relationships of shorter duration, they are more likely to be assessed on a case-by-case basis.

Seeking expert advice

In Mediations Australia, family law is one of our specialties. Reaching a property settlement when a relationship ends is a stressful experience and understanding what you may be entitled to can be confusing.

We can help give you a better picture of what are entitled to ask for in a property settlement, in particular by assisting you to understand the value of your contributions to the relationship. Contact us for Mediation today.

What Should You Do Now?

At Mediations Australia, we have a team of family lawyers and mediators who can assist you in Sydney, Perth, Adelaide, Melbourne and all other locations in Australia. We also do international family law matters.

Getting legal advice early is the most important thing to do.

Sadly people often wait too long to get legal advice. Take advantage of our FREE consultation with a family law expert.
mediation

Family Law Mediation. What Happens If I Don’t Want to Do It?

By Family Law, Mediation

At the outset, there are circumstances in which mediation is not appropriate and we will detail them further in this article.

In Australia and throughout the World there is a growing acknowledgment that litigation does not work, but for the very few who have no other alternative. Litigation is often lengthy, costly, have little regard for the emotional impact of all involved and invariably hands down judgments that no one typically is happy with, but have no other choice but to live with. Conversely, collaborative law, mediation, and arbitration are all ways in which you and your ex-partner are able to play very active roles in how your family law dispute is negotiated and the middle ground that you both are willing to agree to. That said, there are no winners or losers in mediation either, but you will walk away when successful spending significantly less time and money than the alternative.

Is Mediation Compulsory?

Family Law Mediation which is also called Family Dispute Resolution (“FDR“) is the mandated preliminary step to initiating court proceedings in family law matters. Once mediation has been completed hopefully your matter has now been resolved, but if not, you will be issued a certificate from the mediator advising the court whether or not a genuine attempt was made by you and your ex-partner at the mediation.

More specifically, the Certificate will state one of the following:

  • the other party did not attend
  • you and the other party attended and made a genuine effort to resolve the dispute
  • you and the other party attended but one or both of you did not make a genuine effort to resolve the dispute
  • the FDR practitioner decided your case was not appropriate for FDR, or
  • the FDR practitioner decided it was not appropriate to continue partway through the FDR process.

Importantly, if you want to say “No” to mediation because you have fears of violence towards you or fears that your child or children have been abused, you need to raise this at the outset with the mediator. In these circumstances, there will be no requirement for you to attend the mediation.

But What If I Just Don’t Show Up?

There can be significant ramifications in simply not attending FDR, in particular, considerable delays in trying to get the dispute listed by the court and the potential risk that because of your no-attendance the court may order you to have to pay your ex-partners legal costs.

How Can Mediations Australia Help?

At Mediations Australia, we can answer your questions regarding FDR and other types of alternate dispute resolution. Call one of our Perth, Melbourne, Sydney and Brisbane meditation teams today.

Getting legal advice early is the most important thing to do.

Sadly people often wait too long to get legal advice. Take advantage of our FREE consultation with a family law expert.