Girlfriend moving into PPOR

Discussion in 'Legal Issues' started by dan_89, 22nd Jun, 2015.

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  1. dan_89

    dan_89 Well-Known Member

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    Hi All,

    Looking for asset protection advice as my girlfriend has recently moved into my newly renovated PPOR with me. Basically I purchased the property myself and she does not contribute to the mortgage or property other than purchasing few smaller items and paying for half of the TV.. She is happy with this arrangement as she only works part time while studying and cannot afford the responsibilities of home ownership as yet.

    At the moment we haven't discussed the money side of things but she will most likely be paying for general food/groceries and will be paying 1/4 of utilities (2 of her friends will also be living in the house and paying $100pw).

    In terms of covering myself in case we were to break up in future, what am I best to do? Obviously I will see legal advice but would like to hear from anyone else that may have been in this position.

    Thanks in advance.
     
  2. thatbum

    thatbum Well-Known Member

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    The short version is "not be in a de facto relationship with her". Contrary to popular belief, co-habitation is only one of the factors that goes towards that legal definition - although a fairly big one.

    Other big factors include whether there is a sexual relationship, and the extent of financial inter-mingling.

    Seriously though, if you're so worried about asset protection, then she shouldn't be moving in.

    Btw, the fact that she is not contributing towards the mortgage works both ways. It doesn't help you necessarily because it could look like you're supporting her while she studies.
     
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  3. Depreciator

    Depreciator Moderator Staff Member Business Member

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    Looks like it's separate bedrooms, Dan, and no hanky panky.
     
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  4. Terry_w

    Terry_w Structuring Lawyer and Finance Broker - all states Business Member

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    You need to consider the definition of de facto under the family law act. If she comes under the definition of defacto under family law then she may be able to make a claim on the property if you have been in a de facto relationship longer than a certain period (12 months or 2 years if no children)

    With family law the courts look at financial and non financial contributions to the property.

    If you want asset protection against relationship break down then consider a binding financial agreement - or separation now.

    Keep in mind the asset protection aspects of death too. Different definitions of de facto under the Succession Act and she could make a claim even if not a de facto.
     
  5. dan_89

    dan_89 Well-Known Member

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    Thanks for the advice all. We have been in a relationship for approx 4 years and don't plan on ending things but as we know things happen, people change and nothings certain so would prefer have a back-up plan or protection against the things I've worked hard for. I have only recently moved out of home so we are currently not legally in a de facto relationship but that will soon change after a period of living together.

    To be honest the thought didn't cross my mind until the discussion came up with work mates last week.

    The death issue is another I should probably consider given I have debt around the $700k mark.
     
  6. Terry_w

    Terry_w Structuring Lawyer and Finance Broker - all states Business Member

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    Debt doesn't matter in that spouses are not liable for each other's debts (unless guaranteed). It is the equity you should consider.
     
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  7. bob shovel

    bob shovel Well-Known Member

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    just have her postal address elsewhere, parents etc. a mail redirection can get the dolly subscription to you:p

    i'll send you the invoice for my legal advice;)
     
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  8. dan_89

    dan_89 Well-Known Member

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    Agreed Terry, I'm happy for anyone to take on that $700k after me! The equity on the other hand is a different story.. :)

    Does anyone have a contact for a legal professional that is good to deal with in the Melbourne South East?

    I better go home split that queen bed in 2! :D
     
  9. James McIntyre

    James McIntyre Adelaide Buyers Agent|Advocate Business Member

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    Rule no 1.Who pays for what,when & where.Your leaving yourself wide open here,making it up as you go really will not cut it,it will cause problems.
     
  10. James McIntyre

    James McIntyre Adelaide Buyers Agent|Advocate Business Member

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    Rule no 2.^^^^^^^^^^^^^^^ dont do this...................
     
  11. Perp

    Perp Well-Known Member

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    It's worth what he's paid for it. :p

    Mail subscriptions irrelevant.
     
  12. Piston_Broke

    Piston_Broke Well-Known Member

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    Charge her rent
    Keep all expenses separate.
    Get paid electronically for her share of amenities.
    Do not let her pay any property bills, and reinburse her if she does (always leave payment trail).
    Have a separate bedroom room for her.
    Tell her all above is for tax purposes.

    Hope for the best
    Good luck you're gonna need it.
     
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  13. willair

    willair Well-Known Member Premium Member

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    If that,s already on your mind that you may break up in the future ,then ask yourself the question why do it in the first place once fear of the unknown creeps into the mind you may well end up in bed with one of the Ladies mates...
     
  14. SeafordSunshine

    SeafordSunshine Well-Known Member

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    1.
    Think about giving her half of your assets now.
    2.
    Think about giving her the rest when you die.
    If that sounds palatable, then go ahead with your cohabitation, if not then ask her to move, now.
    I hope this helps.
    P.S
    I think you are a naughty boy for not thinking about this before she moved in!
    So there!
     
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  15. Abooking

    Abooking Well-Known Member

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    If you get her pregnant then thats when you will lose your shirt if the relationship doesn't work out. Family law in the nanny state of australia is a nightmare. It goes both ways though as a wealthy female friend of mine had a baby with a loser and now she is paying him maintenance.

    Good luck.
     
  16. Whitecat

    Whitecat Well-Known Member

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    Let me know how you go.
    This is something I think about as well
    I don't think there is an easy answer apart from find someone equal or richer in wealth. If they are not equal or richer coming into the relationship then you have to be prepared to lose something if it doesn't work out.

    Maybe a 'prenup' can work I don't know. That's why I am following. Please keep sharing.
     
  17. Piston_Broke

    Piston_Broke Well-Known Member

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    There's nothing wrong with protecting your hard earned assets.
    Specially when she can have him removed from his own home with just a phone call and no evidence whatsoever.

    You also make another important point:
    Sleeping with her friends could also be evidence that she was just renting the room and no marriage type relationship giving her half his assets existed.
     
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  18. willair

    willair Well-Known Member Premium Member

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    As long as you pay the retainer fee with the solicitor then everyone is innocent till the blurry image of the final conclusion walking out the front door of the court sinks in..
     
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  19. RPI

    RPI Property Lawyer, Town Planner Business Member

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    Binding Financial Agreements can be before, during or after the relationship. They are expensive. She will also need independent legal advice and the solicitor drafting the BFA will need to be comfortable that the other solicitor giving the independent advice is suitably experienced to do so.

    Also note that DV laws are often used where there is no physical violence, it can be purely witholding of financial support. I assume Vic DV laws are similiar to ours but not sure. So you are not requiring payment of mortgage now but if you change that in the future, a complaint gets made with a couple of key words in there and you will be the one dragged out of the house with a temporary protection order stopping you from going within a 100m of the place until you spend $5k and a month or 2 to overturn it. This stuff works on a first in basis too, doesn't matter male or female. My family law guys see this constantly in separations, it appears to be a tactic used by one side to pressure the other.
     
  20. thesuperman

    thesuperman Well-Known Member

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    Roughly how much are we talking about?
     
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