Insights & Articles

When sorting out the monetary side of separation, the Property (Relationships) Act 1976 ("the Act") sets out how property is to be divided for relationships that qualify. It generally aims to divide property (the assets and liabilities including houses, cars, superannuation, mortgage loans etc.) in a way that is “fair”. This means the starting point is that property is divided equally. However, there are some exceptions.

Protecting assets has become an integral aspect of modern relationships, with the growing importance of prenuptial agreements for safeguarding individual interests. In June 2023, the New Zealand Supreme Court issued a significant ruling in the case of Sutton v Bell, which centered on Sections 44 and 26 of the Property (Relationships) Act 1976 ("PRA"). This decision marks a pivotal shift in the interpretation of key legal provisions governing property rights in relationships.

Countless families across New Zealand place their most valuable assets, such as their property, into a discretionary family trust. However, when a couple separate and each party is a trustee to the same family trust, conflict and disagreement will often arise as to the management and enjoyment of trust assets. Disagreements on internal trust matters have the possibility of turning into time-consuming, expensive and public proceedings in court. Mediation is an alternative solution for settling trust disputes and may be a more advantageous option for parties.

When was it over? When to call it quits? When did you say goodbye? Am I separated? What's in a date? In the midst of a relationship breakdown, when you and your former partner are separated is not often a front-of-mind question. However, your separation date can be important information in family law proceedings.

The combination of isolating within one bubble along with additional financial stress, changes to childcare and working from home can bring personal relationships closer or unfortunately, push them apart. Breakdowns in personal relationships can add an additional layer of stress to an already difficult situation. However, it is important to remember that help is available.

A separation doesn't have to be fraught with conflict, including when Lawyers are involved. If you have recently separated and need some assistance with resolving a dispute involving property and/or children you may want to consider doing so under the framework of Collaborative Advocacy.

If you or someone you know has signed a Prenuptial Agreement, Premarital Agreement, Antenuptial Contract or Contracting Out Agreement in a country outside of New Zealand, then you/ they should find out if and how that Agreement applies in New Zealand. Irrespective of where these types of documents are signed, they generally have a similar purpose; that being to determine the status, ownership and value of assets at the start and end of a couple's relationship. But, are they valid when you have moved away from the country of signing?

Feeling stressed or anxious about how Covid-19 (coronavirus) and New Zealand entering alert level 4 with nationwide lockdowns will affect you and your family members? Times of crisis can result in a push-and-pull effect with our personal relationships. They bring people together – only those in your household! - but difficult times can also lead to difficulties arising in our relationships with our, quite literally, nearest and dearest.

A special status is given to the "family home" in relationship property disputes under the relevant legislation, the Property (Relationships) Act 1976 ("the Act").

The Property (Relationships) Act 1976 ("the Act") applies to marriages, civil unions and de facto relationships. Generally under the Act, at the end of one of these relationships, the parties receive a 50:50 share of all the relationship property. This usually includes the home, family chattels, and all other property acquired during the relationship. However the Court does have the power to award a lump sum payment or order the transfer of relationship property from one party in the relationship to the other under Section 15 of the Act.