Relationship property in New Zealand is governed by the Property (Relationships) Act 1976. Once you have lived together for three years, whether you are married, in a civil union or in a de facto relationship, the starting point under the Act is that relationship property is divided equally if you separate. That usually includes the family home, the vehicles, the furniture, KiwiSaver contributions made during the relationship and often more than people expect. Who paid for what is largely beside the point.
For plenty of couples that default is right. For others it is not. If you are moving in with a house you already own, if one of you has an inheritance or money from family going into the relationship, if you have children from an earlier relationship, or if you hold shares in a business, it is worth putting your own terms in writing rather than leaving it to the Act.
Contracting Out Agreements
An agreement under section 21 of the Act lets you and your partner decide for yourselves what is separate property and what is shared. These are often called contracting out agreements, prenups, or relationship property agreements. They can be entered into before you move in together, at any point during the relationship, or when circumstances change, for example, when one of you sells a property, receives an inheritance, or contributes the deposit on a new home.
Common arrangements we prepare include keeping a pre-owned home as separate property, recording unequal shares as tenants in common, protecting a specific asset or a sum of money while sharing everything else, and recording a loan from one partner to the other.
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Separation Agreements
When a relationship ends, a separation agreement records how property is to be divided so that both of you can move on with certainty. It deals with the house, the mortgage, KiwiSaver, vehicles, debts, and any payment from one of you to the other. Where the family home is being transferred or sold, we handle the conveyancing side of that at the same time, which keeps things moving and avoids paying two firms to talk to each other.
Most separations we deal with are resolved by agreement without going to the Family Court. Where a matter does need to go further, we will tell you early rather than let costs build.
Getting it right
For an agreement to be binding, each of you must have your own lawyer, and each lawyer must certify that they have explained the effect and implications of the agreement to their client. We act for one party only. If your partner does not have a lawyer, we can point them towards someone who can advise them independently.
We are based in Greenlane and act for clients across Auckland. If you would like to talk it through, phone (09) 579 0033 or send us a message and we will come back to you.
Prices for our relationship property and separation agreements services
| Husband and Wife | Ask for a guideline price |
| De facto Partners or engaged | Ask for a guideline price |
Relationship Property & Separation Agreements FAQ
See related questions and quires related to Relationship Property & Separation Agreements.
We are not married. Does the Act still apply to us?
Yes. The Property (Relationships) Act applies to de facto relationships of three years or more in the same way it applies to marriages and civil unions. It can also apply to shorter relationships in some circumstances, including where there is a child of the relationship. A lot of people are surprised by this, and it is the single most common reason clients come to see us about an agreement.
What makes a relationship property agreement legally binding?
It must be in writing, signed by both of you, and each signature must be witnessed by a lawyer who certifies that they have explained the effect and implications of the agreement to that person. An agreement drawn up between yourselves without independent legal advice will not meet the requirements of the Act.
Can an agreement be overturned later?
The Court can set an agreement aside if giving effect to it would cause serious injustice. That is a high threshold, and it is far less likely to be met where the agreement was properly documented, both parties disclosed their assets honestly, and both had proper advice at the time.
Agreements that sit untouched for twenty years while circumstances change are the ones most at risk, which is why we suggest a review every few years or whenever something significant changes.
We have separated and we agree on everything. Do we still need a written agreement?
We recommend it. A verbal understanding is not binding, and it does not stop a claim being made later. A properly certified separation agreement draws a line under the property division and lets banks, KiwiSaver providers and Land Information New Zealand act on what you have agreed.
Does a family trust protect property from a relationship property claim?
Not on its own. Trust assets are not relationship property, but the Court has a range of powers where trust arrangements have the effect of defeating a claim, and relationship property may have been used to fund the trust. A trust and a relationship property agreement do different jobs and often work best together. We look at both.