The Property (Relationships) Act 1976 (‘PRA’) makes the assumption that all relationship property will be divided equally on the breakdown of any relationship (whether you are married, in a de facto relationship or a civil union) that has lasted for 3 years or more. If you are in, or about to enter into, a relationship and you have significant assets that you wish to clearly protect as separate property in the event that the relationship breaks down, then you will need to enter into a Property (Relationships) Act Contracting Out Agreement (‘Contracting Out Agreement’).
The sorts of assets that you should consider protecting include:
The PRA has strict requirements in respect of Contracting Out Agreements and, if these are not met, then the agreement will be deemed invalid and unenforceable. In particular: