On 8 April 1903 he married Alice Emily Walker, of Tenterfield Station, in St Stephen's Presbyterian Church, in Tenterfield, New South Wales.
Their first home was in Queen Street, Woollahra.
The Patersons had two children, Grace (born in 1904) and Hugh (born in 1906).

Paterson had been previously engaged to Sarah Riley for eight years, but this was abruptly called off in 1895 following a visit to her at Dagworth Station in Queensland where she was visiting the Macpherson family.
It was here that Paterson met his fiancée's best friend from school days, Christina Macpherson, who composed the music for which he then wrote the lyrics of the famous "Waltzing Matilda".
However, following this collaboration Paterson was suddenly asked to leave the property, leading historians to conclude that he was a womanizer and had engaged in a scandalous romantic liaison with Macpherson.

Paterson died of a heart attack in Sydney on 5 February 1941 aged 76.
 Paterson's grave, along with that of his wife, is in the Northern Suburbs Memorial Gardens and Crematorium, Sydney.
On 8 April 1903 he married Alice Emily Walker, of Tenterfield Station, in St Stephen's Presbyterian Church, in Tenterfield, New South Wales. Their first home was in Queen Street, Woollahra. The Patersons had two children, Grace (born in 1904) and Hugh (born in 1906).
Paterson had been previously engaged to Sarah Riley for eight years, but this was abruptly called off in 1895 following a visit to her at Dagworth Station in Queensland where she was visiting the Macpherson family. It was here that Paterson met his fiancée's best friend from school days, Christina Macpherson, who composed the music for which he then wrote the lyrics of the famous "Waltzing Matilda". However, following this collaboration Paterson was suddenly asked to leave the property, leading historians to conclude that he was a womanizer and had engaged in a scandalous romantic liaison with Macpherson.
Paterson died of a heart attack in Sydney on 5 February 1941 aged 76.  Paterson's grave, along with that of his wife, is in the Northern Suburbs Memorial Gardens and Crematorium, Sydney.
Banjo Paterson