Who gets what? A simple guide to the Property (Relationships) Act

This is the law that decides how a couple’s property gets split if their relationship breaks down. It covers married couples, civil union partners, and de facto couples.

The main idea behind it is simple: fairness. 

In most cases, that means an equal 50/50 division of what’s called ‘relationship property’. The Act’s key principle is that both partners’ contributions (financial and non-financial) are treated as equal.

The current Act came into effect in 2002, replacing the old Matrimonial Property Act 1976 (which only applied to married couples).

The Act applies to:

• Married couples
• Civil union partners
• De facto couples 

This is when you’ve been living together as a couple, usually for three years or more.

The law looks at a range of factors to decide if you’re in a de facto relationship. Things like how long you’ve been together, whether you share finances, own property jointly, or have a child.

Shorter relationships can still fall under the Act in certain cases. For example, if you share a child or if one partner has made a substantial contribution and it would be seriously unjust not to divide property.

Relationship property includes most things you’ve gained or shared during your time together. Think of it as the assets that made up your shared life.

Examples:

• The family home is relationship property whenever acquired
• Furniture, appliances, and vehicles used for family purposes
• Savings, investments, and other assets built up while together
• KiwiSaver contributions made during the relationship
• Relationship debts (like a mortgage or family car loan) are also shared under the Act

Anything that doesn’t fall into the shared “pool” is called separate property.

That usually means:

• Assets you owned before the relationship started
• Gifts or inheritances received by one person, as long as they’re kept separate

But, and it’s a big “but”, separate property can turn into relationship property if it gets intermingled.

It’s surprisingly easy for property that started out as “yours” to become “ours”. Under sections 9 and 9A of the PRA, separate property can become relationship property if it’s mixed with shared assets or its value increases through the application of relationship property or the efforts of the other partner.

For example, this can happen if you:

• Use your inheritance to renovate the family home
• Add your partner’s name to the title of your house
• Combine separate savings with joint accounts
• Both contribute (financially or through work) to improving an asset that one of you originally owned

Once separate and relationship property are intermingled, it can be tricky to untangle who owns what. If an asset’s value has increased because of joint effort or shared funds, it might be partly (or entirely) treated as relationship property under the law.

Yes, usually. The default rule is an equal split of relationship property.

But there are exceptions:

• Short relationships (under three years): The court can decide what’s fair based on each person’s contributions.
• Extraordinary circumstances: In rare cases, if a 50/50 split would be grossly unfair, the court can divide things differently. This exception is very rarely used; the threshold for ‘repugnant to justice’ is extremely high.

If one person is entering the relationship with significant assets or a business, you can create what’s called a contracting out agreement.

This lets you both agree in advance on what will (and won’t) be shared if the relationship ends. It’s not an easy conversation to have, but it can save a huge amount of stress (and $$) later on.

Each partner must have their own independent lawyer, and that lawyer must witness the signature and certify that they’ve explained the agreement’s effects and implications.

So, for a contracting-out agreement to be legally valid, it must:

• Be in writing and signed by both of you
• Be signed in front of independent lawyers (one each)
• Have those lawyers certify that they explained the legal effects to you both

If these steps aren’t followed, the agreement may not be enforceable.

Costs vary depending on your situation, so it’s best to get quotes from a few family lawyers before starting the process.

If your relationship does come to an end, here’s what to do next:

• List what you both own (and owe) and work out what counts as relationship property.
• Try to agree either between yourselves, through your lawyers, or with the help of a mediator.
• If you can’t agree, the Family Court can make a decision for you.

Hopefully, you’ve already had some of these conversations early on, especially if there were any assets with question marks (like a business, inheritance, or home owned before the relationship), as that can make the process much smoother.

Important time limits:

• Married or civil union couples: you need to apply within 12 months of your divorce being finalised.
• De facto couples: you have three years from the date of separation to apply.

You can apply for an extension, but the court only grants this if delay would cause serious injustice, so don’t leave it too long.

Getting professional legal advice early can make a huge difference. Relationship property law can be complex, and having a lawyer on your side helps you understand your rights, avoid potential pitfalls, and ensure any agreements you sign are legally watertight.

• Family lawyer
• Community Law – free legal advice and resources
• Family Court – information and forms
• Citizens Advice Bureau – general guidance and support

You can find a list of family lawyers through the New Zealand Law Society’s ‘Find a Lawyer’ directory.

You may also qualify for legal aid, depending on your income, assets, and the complexity of your case.

Yes, with a contracting-out agreement that meets all the legal requirements.

That’s the starting point, but there are exceptions, particularly for shorter relationships or if an equal split would be clearly unfair.

The part of your KiwiSaver that built up during the relationship is usually counted as relationship property.

If a house was owned by one partner before the relationship but later became the family home, it’s normally classified as relationship property under section 8(1)(c) of the PRA.