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OTHER FINANCIAL MATTERS

Robyn Hamilton, Lawyer, Victoria Legal Aid

There are different laws covering compensation or benefits arising from work injury, being a victim of crime, or transport accidents. Domestic partners or children within the domestic relationship are eligible (see: Chapter 18*2 Transport Accident Injuries; Chapter 18*3 Work Injuries; and Chapter 18*4 Assistance for Victims of Crime).

Claims on a deceased partner's estate

The Administration and Probate Act 1958 (Vic) ("A&P Act") is one of the Acts amended by the SLAR Act (see: "Domestic Relationships", above), and now includes domestic partners. The A&P Act now applies where a person dies intestate and is survived by a domestic partner or by both a domestic partner and a spouse. Section 51 provides for the partner's entitlement ("partner" is defined by section 3 as spouse or domestic partner) and section 51A provides a sliding scale of entitlements where the intestate leaves a domestic partner and a spouse.

If the deceased leaves a will that does not adequately provide for the proper maintenance and support of "a person for whom the deceased had a responsibility to maintain and support", an application can be made to the Supreme Court of Victoria for a greater share of the estate. It used to be that only the widow, widower or children of the deceased could make such an application. Since 20 July 1998, anyone who falls within the description of "a person for whom the deceased had a responsibility to maintain and support" can apply. Where the person died before that date, the previous limitations apply. For further information, see: Chapter 20*1 Wills.

Centrelink payments

A pension or benefit may be refused or brought to an end on the basis that a parent is living in a "marriage-like relationship". In deciding whether such a relationship exists, all the circumstances of the relationship must be considered, particularly its financial and social aspects, the nature of the household, any sexual relationship between the people, and the nature of their commitment to each other. As a result of the Commonwealth reforms discussed above, since 1 July 2009 the Social Security Act 1991 (Cth) treats same-sex couples in the same way as heterosexual de facto or married couples. People living in same-sex relationships who are receiving or applying to receive Centrelink payments have an obligation to advise Centrelink of their same-sex de facto relationship.

A person who feels that Centrelink has made a decision they do not agree with may apply for an internal review of that decision by writing to Centrelink. If the original decision is upheld, then the person may lodge an appeal with the Social Security Appeals Tribunal. An appeal may be lodged on a special form obtainable from Centrelink, by letter, through the local parliamentary member, or by telephone. See: Chapter 7*2 Social Security Appeals Tribunal, for more information.

Property

From 2 March 2009, amendments to the FLA mean that both same-sex and heterosexual de facto couples who separated after 2 March 2009 will have their property matters dealt with in the Family Court (see: "New Commonwealth legislation", above).

For separations dated prior to 2 March 2009, property matters will be dealt with under the Relationships Act, unless both parties consent to opt into the FLA. The Relationships Act repealed Part 9 of the Property Law Act 1958 (Vic) and proceedings for applicable same-sex or heterosexual de facto property settlements are issued in state courts. The level of the court depends on the value of the property to be settled. To apply under the Relationships Act, the partners must have lived together for at least two years or have cohabited for a shorter time but have had a child together, and at least one-third of the relationship must have been in Victoria. A court may grant leave to issue proceedings in special circumstances where the partners do not meet these requirements.

In making its decision about property, the court must take into account both financial and non-financial contributions made directly or indirectly, including any contributions made as a homemaker or parent and any written agreement made between the partners.

Sections 45 and 51 of the Relationships Act extended the courts' considerations in a property adjustment to include post-separation needs and ongoing responsibility for children. In addition, section 41(1)(b) empowers the court to make an order for maintenance. The grounds for a maintenance application set out in section 51(1) are that the applicant is unable to support himself or herself adequately because the partner's earning capacity has been adversely affected by the circumstances of the domestic relationship, or for any other reason arising in whole or part from the circumstances of the domestic relationship.

In making the order, the court must consider the factors set out in section 51(2) of the Relationships Act, which are related to FLA section 75(2) factors applicable to couples who have been married and same-sex and heterosexual couples separating after 2 March 2009.

Given the two-year post-separation time limit on making applications under the Relationships Act, the Act will have largely exhausted its application by 2 March 2011.

All same-sex and heterosexual de facto property matters arising from separation after 2 March 2009 and those separating prior to that who opt in by consent, will be dealt with under the FLA, with or without any related children's matters. To be eligible to make an application under the Act one of four conditions must be met:

  1. the relationship must have been of at least two-years duration; or
  2. there is a child of the relationship; or
  3. there has been a substantial contribution by one of the partners, such that a failure to make an order would cause an injustice; or
  4. the relationship is registered.

The court now has power to alter property interests under section 79, the power to make an order for the splitting of superannuation funds, and the power to order maintenance in accordance with the section 75(2) factors in relation to both marriage and de facto relationship breakdowns.

OTHER FINANCIAL MATTERS :: Last updated: Thu Jul 1st 2010