Ledger had relationships with actresses Lisa Zane, Heather Graham and Naomi Watts. In 2004, he met and began dating actress Michelle Williams on the set of Brokeback Mountain. Their daughter, Matilda Rose, was born on 28 October 2005 in New York City. Matilda's godparents are Brokeback co-star Jake Gyllenhaal and Williams' Dawson's Creek co-star Busy Philipps. In January 2006, Ledger put his residence in Bronte, New South Wales, up for sale, and returned to the United States, where he shared a house with Williams, in Boerum Hill, Brooklyn, from 2005 to 2007. In September 2007, Williams' father confirmed to Sydney's The Daily Telegraph that Ledger and Williams had ended their relationship. After Ledger's death, news outlets reported that his drug abuse had prompted Williams to request that he move out of the apartment they shared in Brooklyn.
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After his performance on stage at the 2005 Screen Actors Guild Awards, when he had giggled in presenting Brokeback Mountain as a nominee for Outstanding Performance by a Cast in a Motion Picture, the Los Angeles Times referred to his presentation as an "apparent gay spoof". Ledger called the Times later and explained that his levity resulted from stage fright, saying that he had been told that he would be presenting the award only minutes earlier; he stated: "I am so sorry and I apologise for my nervousness. I would be absolutely horrified if my stage fright was misinterpreted as a lack of respect for the film, the topic and for the amazing filmmakers."
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^ Denby, David. "The Current Cinema: Past Shock: 'The Dark Knight' and 'WALL-E' ". The New Yorker (21 July 2008): 92–93. Retrieved 17 July 2008. When Ledger wields a knife, he is thoroughly terrifying (do not, despite the PG-13 rating, bring the children), and, as you're watching him, you can't help wondering—in a response that admittedly lies outside film criticism—how badly he messed himself up in order to play the role this way. (Postdated)
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^ Nick Squires (1 April 2008). "Heath Ledger 'fathered a secret love child' ". The Daily Telegraph. UK. Retrieved 6 August 2008. If the claims are proved to be true, Ledger's multi-million pound estate would have to be divided between the child he fathered in his teens and his two-year-old daughter, Matilda Rose, whose mother is Hollywood actress Michelle Williams. ... The actor's parents, Kim and Sally Ledger, have declined to comment on the reports [based on comments by other family members, including his uncle Haydn Ledger].