Relationship Property

Under New Zealand's Property (Relationships) Act 1976, most property acquired during a marriage, civil union, or de facto relationship of three or more years is classified as relationship property and is generally divided equally if the relationship ends. This includes the family home, regardless of whose name is on the title or who paid for it.

Relationship property includes the family home and chattels, any property acquired by either partner during the relationship, and the increase in value of any separate property during the relationship. Separate property (property owned before the relationship, or inherited/gifted to one partner specifically) may remain separate, but the rules are complex.

If you're buying property while in a relationship, or buying with someone who is in a relationship, it's important to understand how the PRA might apply. A contracting-out agreement (sometimes called a prenup or relationship property agreement) can vary the default equal-sharing rules, but both parties need independent legal advice.

When buying property, consider your relationship status and how the PRA might apply. If you're contributing unequal deposits (for example, one partner has more savings), consider a contracting-out agreement to protect each partner's contribution.

If you're buying a property from a couple who are separating, be aware that both partners may need to consent to the sale. Your lawyer should ensure the sale is properly authorised by all parties with an interest in the property.

Discuss relationship property implications with your lawyer before purchasing. If you're buying with a partner and want to protect unequal contributions, ask your lawyer about a contracting-out agreement under the PRA. Both partners need their own independent lawyer for this agreement to be valid.