De-Facto Relationships

The following factors are considered when determining whether two people are in a de-facto relationship:

• The length of the relationship between them;
• Whether they have resided together;
• The nature and extent of common residence;
• Whether there is, or has existed in the past, a sexual relationship between them;
• The degree of financial dependence or interdependence, and any arrangements for financial support between them;
• The ownership, use and acquisition of their property (including property they own individually);
• The degree of mutual commitment by them to a shared life;
• Whether they care for and support children; and
• The reputation, and public aspects, of the relationship between them.

It is important to note that the above factors are not considered a check list, all of which must be satisfied to be determinative of a de-facto relationship. If you are wondering whether you are in a de-facto relationship and most of the above criteria significantly apply to your relationship, then it is likely that you are in a de-facto relationship.

Generally, where people have been together for a long time, live together, are involved in a sexual relationship and have completely intermingled finances, it follows that there will be a significant reputational or public aspect to the relationship.

Potential Implications of Declaring a De-Facto Relationship for Tax Purposes

Quite commonly, people assert the existence of a de-facto relationship on their tax return to attract some form of tax benefit. While this may have obvious tax benefits at the time, should that person make a de-facto claim against you in the Family Court, denying the existence of that de-facto relationship then necessarily means admitting a lie to the taxation office.

The sting here is twofold; not only does it become extremely difficult to deny the existence of a de-facto relationship, but the Australian Taxation Office may seek further tax payments.

A similar situation can exist when a person claims the Centrelink benefits. To be eligible for such a benefits, a person must be single and declare that they are not married or in a de-facto relationship.

Should a person later wish to bring proceedings against their former de-facto partner in the Family Court, then that may involve an admission of lying to the Department of Human Services and repaying the fraudulently obtained benefits.

If you are in a de-facto relationship and have any concerns regarding this relationship then please do not hesitate to contact one of our experienced Family Lawyers for a confidential discussion about your matter.