MY PARTNER HAS TO GO INTO CARE, DO I HAVE TO PAY FOR HIS CARE?
Scenario ;
My partner has been assessed as needing full time residential care.
When we entered our de facto relationship, we entered into a Contracting Out Agreement under the Property (Relationships) Act 1976. The agreement provides that all our assets are held separately and there is no joint property.
His assets are under the threshold.
At the date my partner was assessed as needing care we had not separated.
Do I have to contribute towards the cost of his care if he has no means to do so? The short answer is YES.
The WINZ position is :
When a client aged 65 years or over has a partner, the financial means assessment will include their partner’s assets.
A partner, in relation to the client, means a person who is either:
legally married to, or in a civil union with the client or
in a de facto relationship with the client
Even if a partner’s assets are defined as separate property under a Contracting Out Agreement (or “pre-nup”), WINZ will still count them in a financial needs assessment unless the couple has separated.
A client is not considered single for the Financial Means Assessment if they are living apart only because one partner is in residential care, or is unable to reaffirm their marriage or civil union.
Therefore:
A contracting Out Agreement under the Property (Relationships) Act 1976, does not ‘protect’ one partner from having to include their assets in the means assessment of the partner needing to go into care.
If your partner applies for a Residential Care Subsidy, your combined assets—including your separate property protected by a contracting out agreement (prenuptial/relationship property agreement)—will be assessed.
Key Details on Asset Assessment
Contracting Out Agreements Ignored: For government subsidy assessments (WINZ/MSD), your separate property agreement is ignored unless you have legally separated.
Combined Means Test: The subsidy assessment treats you as a couple, looking at all assets of both parties.
"Deprived Assets": If you try to transfer assets out of your name now, they may still be counted as yours.
If your partner has no means, but your combined assets are over the limit, your personal assets may be called upon to pay for their care until the combined value falls below the threshold.
You should consult a lawyer specialising in elder law for advice tailored to your specific contracting-out agreement.
