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How is relationship property divided if there are two de facto relationships?
In relationship property division, there are sometimes instances where two de facto relationships have occurred successively, contemporaneously, or have overlapped.
Relationship property law will dictate what happens where there are competing claims for property orders by two de facto partners, and there is insufficient property to satisfy the property orders.
If the de facto relationships are successive, then the property will be divided in accordance with the chronological order of the de facto relationships.
This means the de facto partner that was part of the earlier relationship will have priority over the de facto partner who was part of the later relationship. This could result in the first partner obtaining half of the total relationship property, and the later partner obtaining up to a quarter of the total relationship property.
However, things get complicated where there is overlap between the relationships. The Court will firstly determine, to the extent possible, which property is attributable to each de facto relationship and divide the property on this basis.
If it is not possible to attribute all or any of the property to either de facto relationship, the property will be divided in accordance with the contribution of each de facto relationship to the property.
Contributions are not determined by each individual but rather the contributions of each couple to the de facto relationship are compared with the other.
Additionally, the Court will not only look at direct financial contributions to the property but will also consider non-financial and indirect contributions (for example, maintaining the property or undertaking household chores).
Anyone making a claim for relationship property where there is more than one relationship to assess should seek advice from a legal professional to understand their priority in the claim, and what they are likely to receive under a property order.
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