Legal Implications for Couples Under New Zealand Legislation
In New Zealand, the legal landscape surrounding relationship property is shaped primarily by the Property (Relationships) Act 1976 (“the Act”). Whether you are married, in a civil union, or living together in a de facto relationship, this legislation plays a crucial role in determining how property is divided when a relationship ends.
Who Does the Property (Relationships) Act Apply To?
The Act applies to married couples, civil union partners, and de facto couples. A de facto relationship is defined under section 2D of the Act as a relationship between two people (regardless of gender) who live together as a couple but are not married or in a civil union. To qualify, factors such as the duration of the relationship, the nature and degree of intimacy, shared residence, and financial dependence are considered.
Generally, the Act’s key provisions apply where the relationship has lasted at least three years. However, in certain cases where there are children or significant contributions made by one party, the Act may still apply, even if the relationship has been shorter.
What Is Relationship Property?
Relationship property includes assets acquired or contributed to during the relationship, such as the family home and chattels, jointly owned property, and superannuation entitlements. Separate property—such as property owned prior to the relationship, gifts or inheritances received by one party—may be excluded unless it becomes intertwined with relationship property (for example, using an inheritance to pay down the mortgage on the family home).
Equal Sharing Principle
A fundamental principle in New Zealand relationship property law is the presumption of equal sharing set out in section 11 of the Act. When a marriage, civil union, or qualifying de facto relationship ends, the law presumes that relationship property is to be divided equally. This principle is designed to ensure fairness and to recognise the non-financial contributions of both parties.
De Facto Relationships and Legal Recognition
For couples living together without marrying, the Act offers similar protections as those provided to married or civil union couples, provided the relationship meets the criteria and duration. This means that cohabiting partners are not at a legal disadvantage compared to those who formalise their relationship, but it is essential to be aware of the qualifying requirements.
If a de facto relationship is less than three years, division of property is not automatic. The party seeking division must prove “extraordinary circumstances,” such as significant contribution to the relationship or the presence of dependent children.
Contracting Out Agreements
Under section 21 of the Act, during a relationship, couples can enter into a “contracting out agreement” (often referred to as a prenuptial or property agreement) to determine how property will be divided if the relationship ends. This can depart from the equal sharing principle and protect either party’s property as their separate property in future. These must be in writing and signed by both parties and their lawyers, with both parties receiving independent legal advice.
Implications for Couples
Whether married or simply living together, couples should understand the impact of the Act on their property rights. For many, the assumption of equal sharing may seem straightforward, but nuances arise in blended families, where separate property becomes mixed, or where one partner has made substantial financial or non-financial contributions.
Seeking legal advice early—especially before purchasing property or making major financial decisions—can help couples clarify their intentions and protect their interests.
Conclusion
Relationship property law in New Zealand aims to provide fairness and recognition of each partner’s contributions, regardless of the formality of the relationship. Understanding your rights and obligations under the Property (Relationships) Act 1976 is essential, whether you are married, in a civil union, or living together. For advice tailored to your circumstances, contact our family law team.
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