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Girlfriend moving into PPOR

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

  1. dan_89

    dan_89 Well-Known Member

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    Melbourne
    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.
     
  3. Depreciator

    Depreciator Moderator Staff Member

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    Looks like it's separate bedrooms, Dan, and no hanky panky.
     
    jim1964 and bob shovel like this.
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA 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 Solicitor, Finance Broker, CTA 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.
     
  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;)
     
  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. jim1964

    jim1964 Well-Known Member Premium 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. jim1964

    jim1964 Well-Known Member Premium 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.