Do I Have to Give My Wife Half of Everything? Understanding Relationship Property in New Zealand In New Zealand, when a marriage or de facto relationship ends, dividing property fairly between both parties can be a challenging and emotional process. One of the most common questions asked during separation is: Do I have to give my wife half of everything? The short answer is, not necessarily, but it depends on various factors, including the length of your relationship and the types of assets you own together. In this article, we’ll explore what you need to know about property division in New Zealand to help you better understand your rights and obligations. The Property (Relationships) Act 1976 The division of property in New Zealand is primarily governed by the Property (Relationships) Act 1976. This Act sets out the rules for dividing relationship property between partners, whether in a marriage, civil union, or de facto relationship. The Act aims to ensure that both parties are treated fairly when a relationship comes to an end. Under the Act, relationship property is generally split equally (50/50) if the relationship has lasted for three years or more. This includes property acquired during the relationship, such as: •The family home •Cars •Bank accounts •Investments •Superannuation (Kiwisaver) •Other assets acquired while together However, there are exceptions and specific circumstances that may alter this 50/50 split, which we’ll explore below. What Is Relationship Property? Before discussing exceptions, it’s important to understand what is considered relationship property. Relationship property typically includes: •The family home: Even if the home was owned by one party before the relationship began, it may still be considered relationship property if both parties lived there during the relationship. •Family chattels: This refers to items used for family purposes, such as furniture, appliances, and vehicles. •Shared finances: Any income earned by either partner during the relationship and any investments or savings made with that income are generally relationship property. •Business interests: If you or your partner started a business during the relationship, the business (or its value) may also be considered relationship property. What About Separate Property? Not all property is divided equally in a separation. Some assets may remain the separate property of one partner. Separate property refers to assets that were acquired before the relationship began or assets specifically excluded through a contracting-out agreement (prenup). For example: •Inherited assets or gifts received by one partner during the relationship may be considered separate property. •Assets owned before the relationship, such as a house, may remain separate property, but if the property was used as the family home, it could be classified as relationship property. It’s worth noting that separate property can sometimes become mixed with relationship property, which complicates matters. For example, if you owned a house before the relationship but later used relationship income to pay off the mortgage or for renovations, the house may no longer be considered entirely separate. Exceptions to the 50/50 Split There are several situations where a 50/50 division of property may not apply: Short Relationships (Less Than 3 Years) If your marriage or de facto relationship lasted less than three years, the presumption of a 50/50 split may not apply. Instead, property division will be based on each party’s contributions to the relationship, including financial and non-financial contributions. In these cases, the courts may allocate a greater share of the property to the person who made more significant contributions. Extraordinary Circumstances In some cases, the court may decide that an equal split would be unjust and could award a greater share to one partner. This might occur if one partner’s financial or non-financial contributions were significantly greater than the other’s, or if there are unique factors that make a 50/50 division unfair. Contracting-Out Agreement (Prenup) Couples can sign a contracting-out agreement (commonly known as a prenup) either before or during the relationship to set out how their property should be divided in the event of a separation. If such an agreement exists and is legally valid, it will override the default 50/50 rule. What Should You Do? If you’re going through a separation, it’s crucial to seek legal advice to fully understand your rights and obligations under the Property (Relationships) Act. The division of assets can be complex, particularly when considering separate property, businesses, or mixed assets. A family lawyer can help you navigate the process and reach an agreement that’s fair to both parties. Conclusion While New Zealand law presumes a 50/50 division of relationship property in most cases, this doesn’t mean that every asset will be split evenly. The circumstances of your relationship, the type of property you own, and any existing agreements, such as a prenup, can all influence how your property is divided. Understanding your rights and obligations early on can help ensure a smoother separation process. If you have questions about your specific situation or need help with property division, our experienced team at Portia Law is here to guide you through this challenging time. Get in touch with us today for expert advice tailored to your needs.
