Perth, Feb 17: A de facto relationship can give rise to property claims under Australian family law if certain criteria are met — and Brisbane-based lawyer Jennifer Williamson says many parents underestimate how quickly exposure can arise, particularly once a couple has lived together on a genuine domestic basis for two years or more.
Williamson, principal and founder of Williamson and Associates, said one of the most common questions she is being asked by parents today is confronting and deeply personal: can a son’s girlfriend claim part of the family home or business if the relationship breaks down? With more adult children living at home for longer and increasingly involved in family businesses, Williamson said many parents are anxious about protecting what they have built.
“It is a very real concern,” Jennifer said.
“Parents have worked for decades to build assets. They want to support their children, but they also want to ensure their home and business remain protected.”
Living at home does not equal ownership
Williamson said simply living in the family home does not give a girlfriend an automatic right to claim it.
“If the property is in the parents’ names and there has been no transfer of ownership, then she does not acquire rights just because she lives there,” she said.
However, she warned complications can arise if financial contributions are made toward mortgage repayments, renovations or improvements — particularly if there is evidence of promises or expectations about future ownership.
“The law looks at substance, not just labels. If money has been contributed in a way that suggests an interest was intended, it can create legal arguments.”
Family business exposure depends on structure
When it comes to a family business, Williamson said the risk depends on structure and ownership.
“If your son is merely an employee or director without shares, there is generally no ownership interest for a partner to claim,” she said.
“But if your son owns shares, receives distributions or has an equity interest, then that interest can form part of any property settlement if a de facto relationship ends.”
Williamson explained that any claim would be against the son’s interest — not automatically against the parents’ ownership — but warned informal or poorly documented arrangements can make disputes complicated and costly.
Prevention is better than litigation
Williamson said the key is proactive structuring and documentation, including clear ownership records, properly documented business arrangements, and accurate records of any financial contributions. She also encouraged families to consider shareholder agreements, trust structures and, where appropriate, Binding Financial Agreements for adult children in serious relationships.
“It is not about distrust,” she said.
“It is about clarity. When assets are clearly structured and documented, everyone understands where they stand.”
Helping children without risking your assets
Williamson said families can support adult children while still protecting lifetime investments — and that these conversations are becoming essential as household and financial arrangements evolve.
“Supporting your child does not mean putting your own financial security at risk,” she said.
“With careful planning, families can provide opportunity and involvement without exposing the home or business to unintended claims.”
“The best time to address asset protection is before there is a problem,” she said.
“Once a relationship breaks down, options become far more limited.”
Media & PR: editor@dailystraits.com. Copyright 2021–Present DailyStraits.com. All rights reserved.