How 'modern relationships' may be leaving some Aussie couples exposed

A new report from the Australian Institute of Family Studies (AIFS) explains that many unmarried Australian couples may not understand the legal and financial consequences of separation, as growing numbers move away from traditional marriage and embrace more diverse relationship arrangements.

Senior Research Fellow at AIFS, Dr. Rachel Carson, said many couples are unfamiliar with how the law views their relationship and may not realize how the Family Law Act can apply to post-separation property and financial arrangements, including potential entitlements.

"Couples don't enter relationships anticipating separation," Dr. Carson said. "While 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 decisions with a clearer understanding of their options, rather than attempting to navigate separation and resolve matters themselves "in the shadow of the law."

"When unmarried couples keep separate finances, live in different homes or only live together infrequently, it's understandable they may assume they're independent in the eyes of the law—however, that may not be the case," Dr. Carson said.

As couples embrace a wider range of relationship styles—from de facto and registered relationships to "living apart together"—these assumptions can increase the risk of misunderstanding how the law applies. Even when arrangements feel independent, the law may still view a couple as being in a committed relationship.

De facto relationships have almost tripled over recent decades, increasing from 6% of all couples in 1986 to 20% of couples today. Census data also shows that more than 80% of couples now live together before marrying, and the median age at first marriage has risen by around five years since the early 1990s.

Australians are also rethinking how they manage money within relationships, with many couples moving away from fully combining finances. While more than three quarters of couples hold a joint bank account (78%), nearly half (47%) maintain separate accounts—particularly among younger couples—signaling a shift toward more individualized or mixed financial arrangements.

Dr. Carson said many couples also make decisions about how they share financial and family responsibilities without realizing the potential legal implications. This is particularly significant given that new AIFS Facts and Figures show that over the past 20 years, around one in two divorces have involved children under the age of 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 is designed to protect individuals and promote fairness following separation, particularly where there are imbalances in care, income or financial security.

However, when people's understanding of their relationship—and how the law applies to it—does not reflect contemporary relationship realities, those protections may not be fully realized.

"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.

Building on this, Kira Duggan, Research Director at AIFS, said the potential disconnect between how people view their relationships and how the law treats them can leave couples exposed.

"This highlights the need for greater public understanding about family law and how it applies across different relationship types," Kira Duggan said.

"Ensuring family law continues to reflect contemporary relationships is essential to supporting individuals and families, reducing uncertainty, and promoting fair outcomes when circumstances change."

More information:
Couple relationships in Australia today. aifs.gov.au/all-research/resea … hips-australia-today

Marriages in Australia. aifs.gov.au/all-research/facts … rriages-australia-25

Provided by Australian Institute of Family Studies (AIFS)