De Facto Relationships

The 3-year rule.

After three years of living together, de facto couples have the same property rights as married couples under New Zealand law.

See the timeline View exceptions

The Law

The basic rule

Under the Property (Relationships) Act 1976, once a de facto relationship has lasted three years, the equal sharing rules apply. This means relationship property is divided 50/50 if the relationship ends, whether through separation or death.

This is the same rule that applies to married couples. The law makes no distinction between de facto and married couples once you pass the three-year threshold.

What this means in practice

The family home is divided equally, regardless of whose name is on the title
Chattels acquired during the relationship are shared
Savings and investments accumulated together are split
KiwiSaver balances may be relationship property

The Timeline

What counts as "three years"

The three years starts when you became a "couple" in the legal sense, not just when you started dating or when you moved in together.

Started dating

The clock hasn't started yet

Not the start date

May not be the start date

Moved in together

Depends on circumstances

Became a "couple"

The clock starts here

- Living together as primary residence
- Combining finances
- Presenting as a couple
- Making joint plans

START

EQUAL SHARING APPLIES

Three years

Same rights as married couples

Important

Exceptions: earlier than three years

The three-year rule is not absolute. The equal sharing rules can apply earlier in two specific situations.

Child of the relationship

If you have a child together, or one of you has a child and the other acts as a parent, the Act can apply from the start of the relationship.

Substantial contributions

If one partner made substantial contributions to the relationship, and not dividing property would cause serious injustice, the court may intervene before three years.

These exceptions exist because the law recognises that significant intertwining can happen quickly, especially when children are involved.

What "equal sharing" means

Equal sharing applies to relationship property, not everything you own. The distinction matters.

Relationship Property Shared 50/50

The family home, regardless of whose name is on the title
Family chattels (furniture, cars, household items)
Property acquired during the relationship
Increases in value of relationship property

Separate Property Usually stays with owner

Property you owned before the relationship began
Inheritances received in your own name
Gifts from third parties intended for you alone

However, the lines can blur. Separate property can become relationship property if it is mixed with relationship assets or used for the benefit of both partners. The family home is particularly complex, as special rules often apply even when one partner owned it before the relationship.

Why This Matters

Timing matters.

Many couples are surprised to learn about these rules at separation, when it is too late to do anything about them. Understanding them earlier creates options.

Before three years

You have more flexibility to create a contracting-out agreement (sometimes called a "prenup") that overrides the default rules. Courts scrutinise these agreements more closely the longer you have been together.

After three years

You can still create an agreement, but it is more complex. You are already entitled to equal shares, so any agreement that gives one partner less will receive closer scrutiny.

Next steps

If you are approaching three years

This is a good time to have a conversation with your partner about property expectations, and to consider whether a contracting-out agreement makes sense for your situation.

If you have passed three years

Understand that the equal sharing rules now apply by default. If you want different arrangements, you need to actively create them through a formal agreement.

When to get advice

Consider getting advice if:

One partner has significantly more assets than the other
You own property that you want to protect
You have received or expect to receive an inheritance
You are unsure when your relationship "officially" started
You are separating and need to understand your rights

Key Takeaways

After three years, de facto couples have the same property rights as married couples
The three-year clock starts when you became a couple, not when you moved in
Exceptions apply if you have children together or made substantial contributions
The family home is usually relationship property regardless of whose name is on it
Contracting-out agreements are easier to create before reaching three years

Related Guide

Learn how relationship property law applies to your situation and what options you have.

Read the Where Do I Stand? Guide