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Protect what you bring.
Contracting-out agreements let couples define their own property arrangements. Protect inheritances, existing assets, and business interests from the start.
Understanding the default rules.
The Property (Relationships) Act applies to marriages, civil unions, and de facto relationships. Without a contracting out agreement, the Act's default rules determine how property is treated — which may not match your intentions.
"Understanding the default rules is the first step to making informed decisions about protecting your assets."
Equal Contribution
The Act presumes each partner contributes equally to the relationship. In most cases, relationship property is divided equally—regardless of who earned more or whose name is on the title.
What Gets Divided
Relationship property includes the family home, family chattels, and property acquired during the relationship. But what about assets you had before? Inheritances? Business interests?
- Family home (usually shared)
- KiwiSaver and superannuation
- Increase in value of separate property
Why Agreements Matter
Without a contracting out agreement, default rules apply automatically. An agreement lets you and your partner decide together how your property should be treated — protecting inheritances, pre-relationship assets, and family interests.
Planning ahead avoids uncertainty and protects what matters to both of you.
Contracting-out agreements
A contracting-out agreement (also called a prenup or Section 21 agreement) replaces the Act's default rules with arrangements that suit your particular situation.
Second Relationships
Protect assets for children from a previous relationship while providing for your new partner.
Common scenarioExpecting Inheritance
Honour your parents' intention that inherited wealth stays with their descendants.
Common scenarioExisting Assets
Protect what you have worked for while building a life together.
Common scenarioBusiness Owners
Keep business interests separate from relationship property.
Common scenarioTrusts alone may not be enough
Many people believe a trust will protect their assets. While trusts can provide some protection, courts can look through trusts in relationship property matters. A contracting-out agreement provides more direct and certain protection.
Advice
Understanding your rights and options under the Property (Relationships) Act. We explain how the law applies to your specific situation.
Agreements
Contracting-out agreements that protect your assets and provide clarity for both partners. Each partner needs independent legal advice.
Reviews
Circumstances change. We help review and update existing agreements to reflect new assets, children, or changed intentions.
Estate Planning
Coordinating your relationship property arrangements with your will, trusts, and overall estate plan.
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Common Questions
Determining when a relationship started and ended is crucial for property division. They affect what counts as relationship property. For de facto relationships, courts look at factors like when you started living together, financial interdependence, and public acknowledgment of the relationship.
The end date is usually separation, but this isn't always clear-cut. We help you establish these dates and understand how they affect your property division.
A de facto relationship is one where two people live together as a couple without being married or in a civil union. The Property (Relationships) Act applies to de facto relationships of three years or more, or shorter relationships in certain circumstances.
Courts consider factors including living arrangements, financial arrangements, care of children, public aspects of the relationship, and the parties' commitment to a shared life.
For relationships under three years, the Property (Relationships) Act may still apply if there is a child of the relationship, or if one partner has made a substantial contribution and not applying the Act would result in serious injustice.
Short relationships are treated differently. The presumption of equal sharing may not apply, and the court has more discretion in how property is divided.
Assets you owned before the relationship are generally classified as separate property, not relationship property. This means they usually remain yours after separation. However, any increase in value during the relationship may be relationship property.
The classification can become complicated when separate property is used to acquire relationship property, or when relationship property is used to improve separate property. Proper documentation and advice are essential.
Inheritances are generally classified as separate property, meaning they are not divided on separation. However, if you mix inherited assets with relationship property (for example, depositing inherited money into a joint account), they may lose their separate property status.
Future inheritances you expect to receive are not relationship property. However, the situation becomes more complex if you receive an inheritance during the relationship. We can advise on protecting inherited assets.
Property held in a trust is legally owned by the trustees, not by you personally. This can protect assets from relationship property claims. However, courts can look through trusts in certain circumstances, particularly where the trust was set up to defeat relationship property claims.
The interaction between trusts and relationship property is complex. Factors include when the trust was established, who controls it, and how it has been administered. We can advise on your specific situation.
Relationship debts are generally divided equally between partners, just like relationship property. This includes mortgages on the family home, joint loans, and debts incurred for the benefit of the relationship or family.
Personal debts incurred before the relationship, or debts for personal purposes during the relationship, may remain the responsibility of the person who incurred them. The classification of debts can be as important as the classification of assets.
Complex situations arise when someone has overlapping relationships or multiple former partners with property claims. Each relationship is assessed separately, but there may not be enough property to satisfy all claims.
Priority rules determine whose claims take precedence. Later relationships generally cannot affect property rights established in earlier relationships. These situations require careful legal analysis.
When a relationship ends by death rather than separation, the surviving partner has a choice. They can either take what they receive under their partner's will (or intestacy), or they can elect to have their relationship property rights determined under the Property (Relationships) Act.
This choice must be made carefully. The Act's equal sharing presumption may give you more than the will, or less. We can help you understand your options and make an informed decision.
Where Do I Stand?
Understand how relationship property law applies to your situation.
Read the GuideDoes the Property (Relationships) Act Apply?
Understanding if the Act covers your situation
02What's Yours, What's Shared
Categorising relationship property
03Common Complications
Trusts, businesses, and inheritances
04Your Options
Different approaches to division
05Choosing an Agreement
Contracting out of the Act
06Keeping It Current
Maintaining your agreement over time
Ready to discuss your needs? We're here to help.