As Darryl Kerrigan infamously taught us, buying a home is part of the Australian dream. Your ‘castle’ promises a life of security and a stable investment opportunity. If purchased with your spouse, buying a property gives you the chance to create a permanent love-nest together.

Like all investments, buying a property with your partner carries risks. Too often, couples get swept up in the excitement of getting onto the property ladder and overlook taking steps to protect themselves. When left to when things sour, it can make a difficult time more challenging and stressful.

Here are 7 things to consider before buying property with your ‘boo’: 

1. What happens to the house if you separate? Will one of you buy out the other’s share or will it be sold?
2. Who moves out of the house if you break up? What are your options if you don’t want to move out, or you want your spouse to move out but they won’t?
3. How will you work out what to pay the other person for their share of the property? This might include considering whether you each get your deposit back, how to treat changes in value to the house since you bought it and how the costs of the house while you lived in it were met.
4. How should contributions to renovations, extensions or landscaping be factored in?
5. If one of you contributed more money than the other at the start, how is this dealt with? What if one of you made a larger contribution to the property while you owned it?
6. What if one of you had assistance from ‘the Bank of Mum and Dad’ to fund the purchase – how are their interests protected when the asset is split up? 
7. What are your options if you cannot agree on how to divide the property?

Getting some legal advice from a family law expert can assist you to talk about these things with your partner, before you buy.    Although it may be uncomfortable and awkward, talking about what happens “if things go bad”  can set expectations and pre-empt future issues from arising. Trust us – it’s a much easier conversation to have while things are still positive between you, than after difficulties arise.

A family law expert can help you to identify those potential risks in your situation and explain how your property might be divided between you if you break up with your partner in future.

They can recommend ways that you can avoid a legal dispute after a separation, including entering into a Binding Financial Agreement (‘BFA’), sometimes known as a ‘prenup’ or cohabitation agreement. They can also advise you about whether a BFA is in your interests, if your partner has raised having one with you.

A BFA sets out in advance what will happen to your property if you and your partner do separate in future. It can be put in place between married and unmarried couples (de facto spouses), either before or after you marry, or  before or after you begin living together.

A BFA acts a bit like a living will. It identifies what will be done with the assets of the relationship if the relationship ends. It can be tailored to your circumstances and created to reflect different stages throughout your lives together. Ideally, a BFA will be updated regularly to recognise changing life circumstances – in particular, the arrival of children.

Even if a BFA is not for you, there may be other steps that can be taken before you enmesh your finances with your partner’s which can reduce your risk of a messy break-up. All good investors do their homework before taking the plunge with a purchase – buying a house with your partner is no exception!

At Parker Coles Curtis, we invite you to contact us for a free 15-minute phone call to discuss your matter and connect with a specialist family lawyer. We are straight-talking and supportive advisors who are here to guide you through life’s transitions. Phone us today on (02) 5114 2660 or simply book an appointment online here.

For more information on sponsored partnerships, click here.