In New Zealand, relationship property is generally divided equally (50/50) between partners under the Property (Relationships) Act 1976. This applies to married couples, civil union partners, and de facto couples who have been together for three years or more. The family home, family chattels, and property acquired during the relationship are typically relationship property — regardless of who paid for them. Sarah Wadworth at Lane Neave provides specialist relationship property advice in Blenheim and across New Zealand.
Last updated: March 2026
The Property (Relationships) Act 1976 is the primary legislation governing how property is divided when a relationship ends. The Act applies to marriages, civil unions, and de facto relationships of three or more years. It also applies to shorter de facto relationships in certain circumstances — for example, where there is a child of the relationship or where one partner has made a substantial contribution.
Under the Act, relationship property includes the family home (regardless of who owned it before the relationship), family chattels (furniture, cars, household items), property acquired by either partner during the relationship, and any increase in the value of separate property that is attributable to the relationship.
Understanding the distinction between relationship property and separate property is central to any property division. The table below summarises the key differences:
| Relationship Property | Separate Property |
|---|---|
| The family home | Property owned before the relationship (unless it became the family home) |
| Family chattels (furniture, cars, appliances) | Inheritances received by one partner (if kept separate) |
| Property acquired during the relationship | Gifts received from third parties by one partner |
| Income earned during the relationship | Personal injury compensation |
| KiwiSaver and superannuation (relationship portion) | Property protected by a valid contracting out agreement |
The boundary between relationship and separate property is not always clear-cut. Separate property can become relationship property through "intermingling" — for example, if an inheritance is deposited into a joint bank account, or if separate funds are used to renovate the family home. These situations require careful legal analysis.
A contracting out agreement — sometimes called a prenup or section 21 agreement — allows couples to agree on how their property will be divided if the relationship ends. The agreement overrides the default 50/50 division under the Property (Relationships) Act 1976.
For a contracting out agreement to be valid under sections 21 and 21F of the Act, each party must receive independent legal advice before signing. The lawyer for each party must certify that they have explained the effect and implications of the agreement. Without this certification, the agreement may be set aside by the court.
"Contracting out agreements are one of the most valuable tools available for protecting property — whether you're entering a new relationship with significant assets, receiving an inheritance, or running a family business. Getting the agreement right from the start avoids years of dispute and uncertainty later."
— Sarah Wadworth, Special Counsel, Lane Neave
Common situations where a contracting out agreement is advisable include entering a relationship where one partner has significantly more assets, protecting a family farm or business, safeguarding an expected inheritance, and entering a second relationship later in life with children from a previous relationship.
De facto couples who have lived together for three years or more have the same property rights as married couples under the Property (Relationships) Act 1976. This means the family home, chattels, and property acquired during the relationship are divided equally.
For de facto relationships of less than three years, the Act may still apply if there is a child of the relationship, or if one partner has made a substantial contribution and it would be unjust not to divide the property. This is assessed under section 14A of the Act.
The three-year threshold is measured from the date the couple began living together in a de facto relationship — which is not always straightforward to determine. The court looks at factors including the duration of the relationship, the nature and extent of the common residence, whether there was a sexual relationship, and the degree of financial interdependence.
Under the Property (Relationships) Act 1976, the family home is presumed to be relationship property and is generally divided equally, regardless of who owned it before the relationship or whose name is on the title. However, in relationships of less than three years, or where there is an extraordinary circumstance, the court may depart from equal sharing.
An inheritance received by one partner is generally separate property — provided it is kept separate. If the inheritance is deposited into a joint account, used to pay down the mortgage on the family home, or otherwise intermingled with relationship property, it may lose its separate status. A contracting out agreement is the most effective way to protect an inheritance.
KiwiSaver is treated as relationship property to the extent that contributions were made during the relationship. This means the portion of each partner's KiwiSaver balance that accumulated during the relationship is typically divided equally. Contributions made before the relationship, and returns on those pre-relationship contributions, may be separate property.
Yes. Under sections 21 and 21F of the Property (Relationships) Act 1976, each party must receive independent legal advice for a contracting out agreement to be valid. Each party's lawyer must certify that they explained the effect and implications of the agreement. An agreement without proper independent legal advice can be set aside by the court.
For married couples, a claim under the Property (Relationships) Act 1976 must generally be made within 12 months of the date a divorce order is granted. For de facto couples, there is no fixed statutory deadline, but claims should be made as soon as practicable after separation. Delay can weaken your position and may result in assets being disposed of.
Whether you're separating, considering a contracting out agreement, or need advice on your property rights, Sarah can help. Book a free 30-minute consultation — no obligation.
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