When a marriage, civil union, or de facto relationship of three years or more ends, the division of property is governed by the Property (Relationships) Act 1976 (PRA). Understanding how this legislation works is critical to protecting your interests during what is often an emotionally difficult time.

The Equal Sharing Presumption

The starting point under the PRA is that relationship property is divided equally — 50/50 — between the partners. This applies regardless of who earned the income, whose name is on the title, or who contributed more financially during the relationship.

This presumption applies to marriages, civil unions, and de facto relationships of three years or more. For de facto relationships of less than three years, the court has broader discretion and will consider the contributions each partner made.

What Is Relationship Property?

Relationship property generally includes:

  • The family home — regardless of who owned it before the relationship, or whose name is on the title, the family home is relationship property if it was used as the couple's primary residence.
  • Family chattels — furniture, vehicles, appliances, and other household items acquired for the use of the family.
  • Property acquired during the relationship — this includes savings, investments, business interests, and KiwiSaver balances accumulated during the relationship.
  • Increases in value of separate property — if a property owned by one partner before the relationship has increased in value due to the application of relationship property or the efforts of either partner, that increase may be classified as relationship property.

What Is Separate Property?

Separate property generally includes:

  • Property owned by one partner before the relationship (subject to the family home exception)
  • Inheritances and gifts received by one partner during the relationship
  • Property acquired after separation

However, the boundary between relationship property and separate property can become blurred — particularly where separate funds have been mixed with relationship funds, or where separate property has been used for the benefit of the family. This is one of the most common areas of dispute.

Contracting Out Agreements (Section 21)

Partners can agree to contract out of the equal sharing regime by entering into a contracting out agreement under section 21 of the PRA. These are sometimes called "prenuptial agreements" or "relationship property agreements". They allow partners to agree in advance on how property will be divided if the relationship ends.

To be valid, a section 21 agreement must:

  • Be in writing and signed by both parties
  • Each party must receive independent legal advice before signing
  • The lawyer must certify that they explained the effects and implications of the agreement to their client

Even with a valid agreement, the court can set it aside if giving effect to it would cause serious injustice.

The Process of Division

When partners separate, they can divide their property by:

  • Agreement — Most relationship property matters are resolved by negotiation between the parties and their lawyers, without going to court.
  • Mediation — A neutral mediator can help the parties reach an agreement.
  • Court proceedings — If agreement cannot be reached, either party can apply to the Family Court for orders dividing the property.

Practical Steps After Separation

  • Keep records of all assets and debts as at the date of separation
  • Do not dispose of or transfer relationship property without the other party's agreement
  • Seek legal advice early to understand your rights and obligations
  • Consider whether any urgent steps are needed to protect assets (for example, registering a notice against the title of a property)

How Indus Legal Can Help

Our family law team advises clients across Auckland on relationship property matters — from negotiating settlements to drafting contracting out agreements and representing clients in the Family Court. We take a pragmatic, commercially-minded approach to help you achieve a fair outcome efficiently.

Contact us on 09 869 4888 or email office@induslegal.co.nz.