Property Division in New Zealand

Understanding relationship property laws and division principles

Relationship Property

Property acquired during the relationship

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

Separate Property

Property owned before relationship or acquired separately

  • â€ĸ Property owned before relationship
  • â€ĸ Gifts or inheritance to one partner
  • â€ĸ Personal effects
  • â€ĸ Property acquired after separation
  • â€ĸ Compensation for personal injury
  • â€ĸ 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

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

Negotiate Settlement

Attempt to reach agreement

  • â€ĸ Direct negotiation
  • â€ĸ Mediation services
  • â€ĸ Collaborative law process
  • â€ĸ Legal representation
3

Court Application

Apply to court if no agreement

  • â€ĸ File court application
  • â€ĸ Serve documents
  • â€ĸ Attend court hearings
  • â€ĸ 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.