Property Division in New Zealand

Understanding relationship property laws and division principles

Relationship Property

Property acquired during the relationship

  • • Family home
  • • Household chattels
  • • Income earned during relationship
  • • Savings and investments
  • • Superannuation schemes
  • • Debts incurred for relationship property

Separate Property

Property owned before relationship or acquired separately

  • • Property owned before relationship
  • • Gifts or inheritance to one partner
  • • Personal effects
  • • Property acquired after separation
  • • Compensation for personal injury
  • • Property subject to succession rights

Equal Sharing

Relationship property is generally divided equally between partners

  • ✓ 50/50 split is the starting point
  • ✓ Applies regardless of who earned more
  • ✓ Includes both assets and debts
  • ✓ Covers all forms of property

Contributions

All contributions are valued equally

  • ✓ Financial contributions
  • ✓ Non-financial contributions
  • ✓ Homemaking and childcare
  • ✓ Property maintenance and improvement

Compensation

Adjustments for extraordinary circumstances

  • ✓ Unequal contributions to separate property
  • ✓ Economic disadvantage from relationship
  • ✓ Extraordinary contributions
  • ✓ Debts and liabilities

Division Process

1

Identify Property

List all assets and debts

  • • Compile asset register
  • • Obtain property valuations
  • • Identify separate vs relationship property
  • • Calculate net worth
2

Negotiate Settlement

Attempt to reach agreement

  • • Direct negotiation
  • • Mediation services
  • • Collaborative law process
  • • Legal representation
3

Court Application

Apply to court if no agreement

  • • File court application
  • • Serve documents
  • • Attend court hearings
  • • Receive court orders

Relationship Factors

  • ✓ Length of relationship
  • ✓ Nature of relationship
  • ✓ Children from relationship
  • ✓ Living arrangements
  • ✓ Financial arrangements

Property Factors

  • ✓ When property was acquired
  • ✓ How property was acquired
  • ✓ Use of property
  • ✓ Contributions to property
  • ✓ Property improvements

Understanding Property Division

The Property (Relationships) Act 1976

This Act governs property division for:

  • Married couples
  • Civil union partners
  • De facto relationships (3+ years or with child)

Key Principles

The Act is based on several key principles:

  • Equal sharing of relationship property
  • Recognition of all contributions
  • Protection of economic interests
  • Consideration of children's welfare

Special Circumstances

Courts may depart from equal sharing in cases of:

  • Extraordinary circumstances
  • Short relationships with disproportionate contributions
  • Separate property becoming relationship property
  • Economic disadvantage from the relationship

Contracting Out

Couples can opt out of the Act by signing a contracting out agreement:

  • Must be in writing
  • Both parties need independent legal advice
  • Lawyers must certify the agreement
  • Can be made before, during, or after relationship

Need Help with Property Division?

Our experienced family lawyers can help you understand your rights and achieve a fair property settlement.