So… your about to buy your first home, or your partner is just about to move into your home, or you have been in a relationship for under 3 years (current legislation)…. You need a relationship agreement (also known as: contracting out agreement).
Now I know you’re thinking right now… why? … we’re in love…. Its too early or we will never break up…wake up. Speaking from my own experience the money you spend getting this sorted is not just protecting you financially, but emotionally also.
Last year my relationship ended, after nearly 6 years. I had purchased two properties myself, one an investment which I had never lived in, the other was to be what I considered my first home. We had also started two businesses in this time also. I was smart in some ways, I got a contracting out agreement on my investment property, as to me it was an investment and one I needed protecting but for my own home/owner occupied I thought, I don’t need one. There were a few reasons for this;
It was deemed a family home and therefore I understood my partner at the time as we were moving in would have a right to it as relationship property – Turns out in a way this wasn’t the case.
I had no problem giving him half the equity in the home as we lived in it together therefore he was helping pay for the mortgage.
I didn’t think we would ever break up.