Welcome to Money Talks, where everyday couples reveal how they navigate all things finance.
The saying “what’s mine is yours, and what’s yours is mine” is often thrown around in relationships. But what happens when the playing field isn’t even?
The sentiment might seem like a good-will gesture of equality, but when entitlement comes into play, the water gets murky. Under Australian law, it only takes two years for a relationship to be recognised as de facto — meaning you are legally entitled to half of each other’s assets – but that doesn’t mean you shouldn’t protect what’s yours.
Stephanie Jones was in a long-term relationship when she and her partner decided to enter the property market. About a year into their search, her mother passed away unexpectantly leaving her with a generous inheritance. Now, she had a decision to make: go all in with her partner and increase their borrowing opportunities or protect herself.
The Couple That Has… One Person Bringing More To The Table
Age: 45 and my partner is 47
Salary: My salary is 75k and he’s on 100k
Profession: Gallery Consultant and Human Resource Manager
marie claire: How long have you been together?
Stephanie Jones: Seven years now, but we had been dating for five years when my mum died and I received my inheritance.
MC: What is your relationship like with money?
SJ: I have always had a healthy relationship with money. I like to buy nice things but I always ensure I have a savings buffer.
MC: What did the conversation around your inheritance look like?
SJ: John and I had talked about our goals early on in our relationship. We were both eager to get onto the property ladder as soon as we could and to one day have a family. Our price guide was between $800,000 to $1,000,000 with a 30-year mortgage. When we started looking we had decided to split the deposit 50/50. Our salaries are about the same so we decided to split the mortgage repayments evenly.
About a year into our search, my mum died suddenly of a heart attack. She was in her 60s and was relatively healthy, so her death came as a complete shock. I received about $650,000 which was more than enough to either pay a large chunk of a mortgage or increase our borrowing capacity to purchase a large property.
I knew mum would want me to invest the money into something like property, but I was conscious that John and I weren’t married and I had no protection if things ever did turn sour. I decided that having John sign a legal contract was the best way forward. I wanted to take the money out of the equation of our relationship so that it wasn’t something that controlled or overshadowed our decisions. I told him that I would put the money into our property but that I wanted him to sign a contract stating that if we broke up, I would receive the amount back that I put in. John was very understanding of my reasons and was happy to sign the paperwork.
MC: How do you split your finances now?
SJ: We settled on a property a few months ago and have just moved in. The money I put in from my inheritance significantly reduced our mortgage repayments, which we are splitting 50/50. We split all other bills the same, but if one of us started earning significantly more, we would adjust our contributions to be pro rata to our respective salaries.
MC: Do you have both a solo bank account, shared or both?
SJ: We both have our own bank accounts plus one joint bank account that we use for bills and a travel fund.
MC: What are your future finance goals?
SJ: To pay off my mortgage and build a heavy investment portfolio for me and my future kids.
*Name has been changed.
Disclaimer: The contents of this article are personal recounts and not advice. They have been prepared without taking account of your objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial advisor to consider whether that is appropriate having regard to your own objectives, financial situation and needs.
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