Living Together Without Getting Married? How a Cohabitation Agreement Can Protect You

More Australian couples are living together without tying the knot. According to the ABS 2021 census about 10.7% of Australians over 15 years of age are in a de facto relationship, and for many it’s a considered a “trial marriage” with the couple going on to wed.

While this modern approach to relationships has many benefits, it can also create financial uncertainty especially if the relationship ends.

It can be confusing to navigate the law and understand how the romantic (and sometimes practical) choice of living together can affect your future from a financial and legal perspective.

Understanding Your Legal Rights in a De Facto Relationship

Many Australians in de facto relationships are unaware of how their legal and financial rights are affected. While the law grants de facto couples rights similar to those of married couples, these rights are not automatically conferred and often require proof of the relationship’s existence and nature. This lack of awareness can lead to unexpected legal and financial consequences, especially during separation or in the event of a partner’s death.

A living together or cohabitation agreement can provide clarity and protection by clearly outlining each partner’s rights and responsibilities. It’s a proactive step to ensure both parties are on the same page and can help prevent disputes down the line.

A cohabitation agreement gives you a straightforward way to record how you’ll handle property, finances, and responsibilities while living together and if you ever part ways.

👉 Learn  more at De facto laws, rights and entitlements in Australia

What Is a Cohabitation or Living Together Agreement?

A cohabitation agreement is a legally binding document between two people who are living together or planning to do so in a de facto relationship. It allows you to agree in advance how your assets, debts, and financial matters will be managed, and what happens if you separate.

Under Australian law, it’s referred to as a Financial Agreement made under section 90UB of the Family Law Act 1975. It’s tailored for couples who aren’t married but want legal certainty.

This type of agreement can cover:

• Who owns what going into the relationship
• How ongoing expenses will be shared
• What happens to jointly acquired property
• How things will be divided if the relationship ends

Why It’s Important for Unmarried Couples who are living together

Without a formal agreement, you may be leaving your financial future to chance.

Even though de facto partners may have rights under Australian law, relying solely on those rights comes with challenges:

• You may need to prove the existence and duration of the relationship
• Financial or property contributions may not be recognised the way you expect
• If you have to fight out the property settlement in court then the Family Court decides how things are split.

A cohabitation agreement puts you in control. It gives you both clarity and certainty which is especially important if one partner has more assets, is buying the home, or is bringing children from a previous relationship.

Common Scenarios Where a Cohabitation Agreement Helps

These agreements are particularly helpful if:

• One person is purchasing a home and wants to protect that investment
• You’re moving in together later in life, perhaps after a previous relationship
• You’ve received an inheritance or have family financial support to safeguard
• One partner is contributing more financially or emotionally
• You want to avoid future disputes and keep things amicable

By agreeing on the terms while things are good, you make future conversations much easier. It’s much easier to work out a fair division when you still have each others best interests at heart, rather than waiting until things have gone pear shaped.

👉 Learn how to talk to your partner about a Cohabitation Agreement

Can You Write Your Own Cohabitation Agreement?

Yes, and thousands of Australians do. With the right tools, you can create a legally binding agreement without spending thousands on lawyers.

Our Cohabitation Agreement Kit includes:

• Professionally drafted legal documents (Word format, easy to edit)
• Plain-English instructions to guide you through each step
• Option to add our fixed-fee legal review service, as required by law

This process can save you time, stress, and thousands in legal fees while still giving you a fully enforceable agreement.

👉 Learn  more at How to create a Cohabitation Agreement

Planning to Move in Now and Marry Later?

If you’re living together now and planning to get married later, you can make a combined financial agreement that covers both stages of your relationship – as de facto partners and as a married couple. This saves you from having to create a second agreement after the wedding.

To elaborate further, a financial agreement made under section 90UB only comes into force after a de facto relationship has broken down. If you go on to get married, then the agreement is no longer valid, and you would need another agreement made under Section 90B of the Family Law Act which covers married relationships.

👉 Learn more about Combined De Facto and Prenuptial Financial Agreements

Living Together? Take Control of Your Future

Moving in together is a big step. Whether you’re just starting out or combining assets later in life, a cohabitation agreement offers security and peace of mind for both partners.

Protect your relationship and your financial future without the drama.

👉 Download the Cohabitation Agreement Kit

FAQs

Is a cohabitation agreement legally binding in Australia?

Yes, if it meets the requirements of the Family Law Act and both parties receive independent legal advice.

Can we change the agreement later?

No, a Binding Financial Agreement cannot simply be amended. If you want to make changes, the existing agreement must be formally terminated and replaced with a new agreement. This means going through the full process again, including drafting a new agreement and obtaining independent legal advice. That’s why it’s important to get it right the first time.

Do we need a lawyer?

To make the agreement legally binding, both parties must receive independent legal advice before signing. Our fixed-fee legal review service can take care of this for you.

What’s the difference between a cohabitation agreement and a prenup?

A prenup (financial agreement under section 90B) is for couples who plan to marry. A cohabitation agreement (section 90UB) is for couples who live together in a de facto relationship.

What happens if we break up and don’t have a cohabitation agreement?

If your relationship was short, and you had few shared assets or no children, separation is often straightforward, you can shake hands and parts without too much concern for property division. But as the relationship grows longer, or if there are children or significant assets involved, things can become far more complex.

Without a cohabitation agreement, you still have legal rights if you’re considered a de facto couple. But proving your contributions or reaching a fair settlement can be difficult. It often leads to legal disputes, court involvement, and higher costs. A written agreement gives both partners clarity and reduces stress if things don’t work out.

Do we have to live together for 2 years to be considered de facto?

Not always. The law also considers whether you share a child, register the relationship, or have combined finances. Two years is just one of several criteria.

Can one partner be forced to move out of the home if we separate?

Possibly. If the home is in one person’s name, they may have stronger rights — unless there’s a legal or equitable claim. An agreement can help avoid disputes.

Do I have any claim on my partner’s property if I’ve been living there?

Potentially but only if you meet the legal criteria for a de facto relationship and can demonstrate contributions to the property, such as through finances, renovations, or caregiving.

Even then, if you want to make a claim, you’ll need to apply to the Family Court, which can be expensive, time-consuming, and emotionally draining. There’s also a strict time limit: you generally have only two years from the date of separation to start proceedings.

A cohabitation agreement helps you avoid this uncertainty by setting things out clearly from the start, so you both know where you stand.

Can we buy a house together without getting married?

Yes. But it’s wise to document how ownership and contributions will work, especially if they’re unequal. A cohabitation agreement and  tenants in common agreement helps protect both parties.

What if I’ve paid more into the relationship – do I get that back?

Not automatically. If you make a claim through the Court, they examine many factors to determine a fair property split. If you want certainty, a cohabitation agreement should set out how contributions will be recognised.

Does a cohabitation agreement cover day-to-day expenses of living together or just property?

It can cover both, depending on what you include. Many couples use it to set out how they’ll manage joint expenses, bills, and rent while living together.

What happens if one of us dies and we’re not married?

You may not automatically inherit. A cohabitation agreement won’t override a will so you should also have proper estate planning and superannuation nominations in place.

Do we need one before or after we move in together?

You can make a cohabitation agreement either before or after moving in together. If you make it beforehand, it helps set expectations early and gives you both peace of mind. If you’re already living together, it’s not too late – you can still make an agreement to protect your interests and formalise your arrangements.

Is it different if we live in Western Australia?

Yes. De facto relationships in Western Australia are governed by the Family Court Act 1997 (WA), rather than the federal Family Law Act 1975. The legal principles are broadly similar, but the wording of the agreement must comply with WA law. Our kits include a version specifically tailored for Western Australian couples.