A new report from the Australian Institute of Family Studies (AIFS) has found that many unmarried Australian couples may be unaware of the legal and financial consequences of separation, as more people move away from traditional marriage and embrace diverse relationship styles.
The report highlights a growing disconnect between how couples view their relationships and how the law defines them, leaving some at risk of misunderstanding their rights and obligations under the Family Law Act.
AIFS Senior Research Fellow Dr Rachel Carson said many couples do not realise that the law can apply to their property and financial arrangements even if they are not married.
“Couples don’t enter relationships anticipating separation,” Dr Carson said. “Whilst divorce rates in Australia are at their lowest in decades, separation remains a common experience for many couples over the course of their lives.”
Dr Carson said that being informed early can help couples make better decisions and avoid confusion if their relationship ends.
“When unmarried couples keep separate finances, live in different homes or only live together occasionally, it’s understandable they may assume they’re independent in the eyes of the law – however, that may not be the case,” she said.
The report shows that de facto relationships have almost tripled in recent decades, rising from 6% of all couples in 1986 to 20% today. More than 80% of couples now live together before marrying, and the median age at first marriage has increased by around five years since the early 1990s.
Australians are also changing how they manage money within relationships. While 78% of couples share a joint bank account, nearly half (47%) also maintain separate accounts – particularly younger couples – reflecting a shift toward more individualised financial arrangements.
Dr Carson said many couples make decisions about sharing finances and family responsibilities without understanding the legal implications. This is especially important given that around one in two divorces over the past 20 years have involved children under 18.
“The division of unpaid care in a couple relationship is often viewed as personal rather than legally significant,” she said. “Family law, however, places substantial weight on non-financial contributions, meaning the circumstances of people who undertake a greater share of unpaid care – typically women – are a key consideration in post-separation property and financial arrangements.”
Dr Carson said Australia’s family law system aims to protect individuals and promote fairness after separation, particularly where there are imbalances in care, income or financial security. But when people’s understanding of their relationship doesn’t align with how the law defines it, those protections may not be fully realised.
“As relationship structures and family dynamics continue to change, it’s important that the law – and public understanding of it – keeps pace with how Australian couples live today,” she said.
AIFS Research Director Kira Duggan said the findings highlight the need for greater public awareness of how family law applies across different relationship types.
“This report shows that the way people think about their relationships doesn’t always match how the law treats them,” Ms Duggan said. “Ensuring family law reflects modern relationships is essential to supporting individuals and families, reducing uncertainty, and promoting fair outcomes when circumstances change.”
Couple Relationships Recognised Under Australian Law
- Marriage: A legally recognised union of two people, entered into voluntarily and to the exclusion of all others.
- De facto relationship: A couple not married but living together on a genuine domestic basis, assessed by factors such as cohabitation, financial interdependence, shared life, property, and care of children. This can include Living Apart Together relationships, where couples live separately but remain committed.
- Registered relationship: A partnership formally registered with a state or territory, offering legal recognition similar to marriage for many purposes.
For more information or to access the full report, visit www.aifs.gov.au or contact the Australian Institute of Family Studies at info@aifs.gov.au or (03) 9214 7888.
