RELATIONSHIP PROPERTY and Contracting Out agreements or Pre-Nups
Property in relationships can include the family home, chattels, vehicles, bank accounts, kiwisaver and shares or investments. Should you and your partner decide to separate, amicably or acrimoniously, the division of these properties accumulated prior and/or during the course of the relationship will need to be identified and attributed to someone. The Property (Relationships) Act 1976 determines how relationship property is divided in the event of separation or death of spouses. It is important you construct sound relationship property agreements that record the arrangements agreed between the two of you to protect your investments from the beginning of your relationship. This can ensure your property remains yours in the event of litigation.
Relationship Property Agreements are entered into sometimes at the commencement of a relationship or during a relationship. This type of Agreement is commonly referred to as a Contracting-out agreement. This type of agreement records what will happen to your separate property and joint property in the event of a separation. We encourage parties to review these agreements once every three years and to record any changes to the status or agreement of your separate or joint property. Taking the time to reach agreement over what property you want to retain as your separate property can save you thousands of dollars in legal expenses and less stress if your relationship comes to an end.
In the event of a relationship or marriage breakdown the Contracting-out Agreement or ‘pre-nup’ becomes the document by which the basis of negotiations of how property and assets is distributed between the two separating parties is determined. A Trust can also be established to protect property assets from future dispute in relationship breakdowns.
We provide specialised legal services in the preparation of all relationship property Agreements and will represent you in the event of a dispute should your relationship end and you cannot reach agreement with your former spouse.