Relationship property: what separating couples need to know
How property is divided when a relationship ends, why the three-year mark matters, and what the Law Commission’s proposed reforms mean today.
Read article
Clear, compassionate support through separation, divorce and parenting arrangements. We protect your interests and help you move forward with confidence.
Family matters are personal. We combine clear, practical advice with a respectful approach, so you understand your options before decisions are made.
When a relationship breaks down the first weeks matter. Decisions made in distress, such as moving out, signing documents or agreeing informally about the children, can be hard to reverse. A consultation before you act gives you the information you need to protect yourself and your children, even if you are not yet sure what you want.
The Property (Relationships) Act 1976 applies to marriages, civil unions and de facto relationships. The starting point is that relationship property is divided equally once the relationship ends, but what counts as relationship property is not always obvious.
Generally, property acquired before the relationship, gifts and inheritances received by one partner, and trust interests. But separate property can become relationship property if it is mixed with other assets or used for the family: an inheritance used to pay down the family mortgage, for example, can lose its separate status.
A de facto relationship of three years or more is generally treated in the same way as a marriage. For shorter relationships the court can still divide property if there is a child of the relationship, or if one partner made a substantial contribution and failure to share would cause serious injustice.
A situation we see often
One partner owned a house before the relationship began. The couple lived there for eight years, raised two children and paid the mortgage from their joint income. On separation the owner says, "It's my house, I had it first."
The legal point: the family home is usually relationship property, whoever bought it and whenever. Its value is generally shared equally, though adjustments may be made for the value contributed at the start.
Disputes become more complex when one partner owns a business or a trust has been established. A company's shares are generally relationship property, but how they are valued, and whether the business can afford to pay out the other partner, are difficult questions. Courts can also look at a trust where a partner has effectively kept control of the assets, and can make orders to compensate the other partner. Early expert advice, including valuation, is often critical.
Couples can make their own arrangements, either before or during a relationship, or on separation. A written agreement under section 21 of the Property (Relationships) Act is binding only if it is in writing, signed by both partners, and each partner has received independent legal advice with the lawyer certifying that they explained the effect. An agreement drafted properly provides certainty and avoids the Family Court.
A situation we see often
A couple in their forties, each with children from a former marriage, plan to live together in a home one partner owns. They want to keep their own assets separate and to protect their children's inheritance.
The legal point: a contracting-out agreement, made before or early in the relationship, records exactly what is shared and what is not. It also reduces the risk of a Family Protection Act claim down the track.
New Zealand has a "no-fault" system. The only ground for dissolution is that the marriage or civil union has broken down irreconcilably, which is established by living apart for two years. Either partner, or both together, can apply to the Family Court. A dissolution order ends the marriage but does not deal with property or the children. Those issues must be resolved separately.
The Care of Children Act 2004 puts the welfare and best interests of the child at the centre of every decision. Parents are usually joint guardians, making major decisions together about education, medical treatment, religion and where the child lives, and one or both have day-to-day care.
Most parents reach an agreement without a judge. Where discussions stall, Family Dispute Resolution is a government-funded mediation service that must usually be tried before applying to the Family Court for a parenting order. Urgent cases and cases involving violence are exceptions.
The court can make orders about day-to-day care, contact, guardianship and relocation. It considers the child's safety, the importance of relationships with both parents and wider family, and the child's own views, having regard to their age and maturity. Our role is to present your case clearly and keep the process child-focused.
If you want to move with your children to another city or country, you need the agreement of the other guardian, or a court order. Relocation applications are among the hardest to resolve. Court decisions turn on the child's welfare, not on either parent's wishes. NZ is also a party to the Hague Convention on child abduction, so unauthorised removal overseas can be treated very seriously.
A situation we see often
A mother is offered a job in another city. The father says he will not agree to the children moving. She has been the primary carer since separation.
The legal point: a move cannot be made unilaterally if it would significantly affect the other parent's involvement. Early negotiation, a clear proposal about how contact will continue, and if necessary a court application are the correct route.
Child support is calculated by Inland Revenue under a formula that depends on each parent's income and the care arrangements. It is separate from parenting arrangements, and the parent receiving it cannot waive it for the child. Spousal maintenance may be ordered where one partner cannot meet their reasonable needs after a separation, for example because they have spent time out of the workforce caring for children. Courts consider each person's means, needs and the length of the relationship.
Family violence is not limited to physical harm. Under the Family Violence Act 2018, it includes psychological abuse, coercive control, financial abuse and intimidation, and can involve children indirectly. If you are in danger, call 111.
We act quickly and sensitively in these matters and will help you assemble evidence and plan for your safety.
The law treats de facto couples (including same-sex couples) and civil union partners much like married couples. Blended families raise specific questions: how step-children are provided for in a will, whether a new partner acquires rights in a home owned before the relationship, and who is responsible for children's expenses. We advise on agreements and on estate planning that reflect your family, not a standard template.
The majority of family disputes settle without a hearing. We prefer negotiated outcomes where they are safe and fair, because they are quicker, less expensive and less damaging for children. When negotiation fails or the other side will not engage, we represent you firmly and professionally in the Family Court. Legal aid may be available if you meet the eligibility criteria and we can tell you how to apply.
New Zealand uses the term dissolution of marriage. It applies once you have lived apart for two years.
It is generally shared equally as relationship property, but how this is achieved depends on whether one partner can buy out the other, whether the property is sold, or whether there are children who need to stay in the home.
Not necessarily. Many matters are resolved through negotiation or mediation, and a court is required only to make binding orders where agreement is impossible.
No. A lawyer cannot act for both partners in a relationship property settlement. Each of you needs independent advice for an agreement to be binding.
This guide is general information only and is not legal advice. The law changes and every situation is different, so please speak to a lawyer about your own circumstances before acting.
How property is divided when a relationship ends, why the three-year mark matters, and what the Law Commission’s proposed reforms mean today.
Read articleHow parenting arrangements are made in New Zealand, when mediation is required before court, and how to put your children first.
Read articleContact us today to arrange a consultation.