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Relationship property in NZ: separation, prenups and contracting-out agreements

How NZ's Property (Relationships) Act splits property on separation: the 3-year rule, separate property, prenups, separation agreements and deadlines.

By the NZ Lawyers team · Facts checked against the sources listed below on 18 October 2026.

Separating, or moving in together? Property rules apply either way

Most people only think about relationship property when a relationship ends and the question becomes who keeps the house. But the rules also matter when you move in together, buy a home, or start a second relationship with assets of your own. In New Zealand, the Property (Relationships) Act 1976 sets out how property is divided when a marriage, civil union or de facto relationship ends. The general rule is an equal (50/50) split of relationship property, unless the couple has made a valid agreement that says otherwise.

Which relationships are covered? The three-year rule

Marriages and civil unions are covered. For de facto couples (two people living together as a couple without being married or in a civil union), the Act usually applies only once you have lived together for at least three years. There are exceptions: a shorter de facto relationship can be covered if there is a child of the relationship or one partner made a substantial contribution, and the court is satisfied that not making an order would cause serious injustice.

No legal step is needed to start or end a de facto relationship. When deciding whether one exists, the court looks at factors such as how long it lasted, whether you shared a home, your financial arrangements and how far you depended on each other, how you owned and used property, the care of children, and whether family and friends saw you as a couple. If you lived together before marrying, that time counts towards the length of the marriage.

Marriages and civil unions of under three years have their own rules: the family home and chattels may be shared according to contributions rather than equally in some situations, such as where one partner owned them before the relationship.

Relationship property vs separate property

Relationship property is usually shared. It generally includes:

  • the family home and household chattels, usually regardless of who paid for them or when
  • property acquired during the relationship, and joint property
  • contributions to superannuation and insurance made after the relationship began, including KiwiSaver
  • family businesses and savings built from family income
  • increases in the value of relationship property

Separate property generally stays with its owner. It includes property one partner brought into the relationship (except the family home), inheritances, gifts from third parties, heirlooms and taonga, and property received under a trust.

Separate property can turn into relationship property. If an inheritance is used to pay down the mortgage on the family home, Community Law says it is likely to become relationship property and can't be claimed back. If shared money is used to improve separate property, the increase in value can become relationship property. Debts are split the same way: personal debts stay with the person who took them on, while relationship debts are deducted before the property is divided.

Is it always 50/50?

Equal sharing is the starting point for relationships of three years or more, but not the only outcome. A court can order an unequal division where:

  • equal sharing would be extremely unfair because of extraordinary circumstances
  • one partner's income and living standards are likely to be much higher after separation because of how the couple divided roles, for example where one partner stayed home with children (known as economic disparity)
  • each partner owned a home at the start but only one is being shared
  • one partner's separate property grew, or was run down, because of the other's actions

The court also has to make sure dependent children are provided for, and it can delay a sale that would cause undue hardship to the parent caring for them. Who caused the break-up usually doesn't matter, and unpaid work such as childcare counts the same as paid work.

Prenups and contracting-out agreements (section 21)

A contracting-out agreement, often called a prenup, lets a couple decide for themselves how property will be divided. It can be made at the start of a relationship, during it, or when it ends. It is often used by people entering a later relationship who want to keep existing assets separate.

For it to be valid, the agreement must be in writing and signed by both partners. Each partner must get independent legal advice from a separate lawyer before signing, each signature must be witnessed by a lawyer, and that lawyer must certify that they explained the effect and implications of the agreement. Because a valid agreement has the same effect as a court order, it is hard to undo. A court can set it aside only if it would cause serious injustice, for example where it is very one-sided.

Separation agreements: can I write my own?

You can agree between yourselves on things like when you separated, care of children, the mortgage and pets, without going to court. But if your agreement divides property, the Ministry of Justice says you each need independent legal advice, and a lawyer for each of you must sign to confirm it. Community Law notes that, apart from a court order, a contracting-out agreement that meets the legal requirements is the only binding way to divide property, so an informal agreement may not hold. Settling the separation date also matters for divorce, because to apply for a dissolution you must have been separated for at least two years.

Separation can affect your will too. Our wills and EPA guide explains when a former partner can still inherit.

Time limits and going to the Family Court

If you can't agree, either of you can apply to the Family Court. The deadlines are one year after a divorce (for a marriage or civil union) and three years after a de facto relationship ends. You can ask the court for permission to apply late.

The Ministry of Justice lists the filing fee as $816, plus a hearing fee of $1,056 for each half day of hearing (both including GST). You can ask for these fees to be waived. Before any hearing there is usually a judicial conference, and the judge may direct a settlement conference. You may be eligible for legal aid.

When to get a lawyer and how to choose one

See a lawyer before you sign anything about property: a prenup, a separation agreement, or a property settlement. For contracting-out agreements and property separation agreements, each partner needs their own lawyer anyway. Get advice early, too, if you are close to a deadline, if a trust or business is involved, or if you are not sure whether your de facto relationship is covered.

Questions to ask before you instruct anyone:

  • Do you regularly do relationship property and contracting-out agreements?
  • Can you give a fixed fee for reviewing and certifying an agreement?
  • How do you charge if negotiation turns into a court application?
  • What documents should I bring, such as valuations, KiwiSaver and loan statements, and trust deeds?
  • Am I likely to be eligible for legal aid, and do you take legal aid work?

Fixed fee or hourly? The Law Society says most lawyers charge an hourly rate, but a lawyer and client can instead agree a fixed fee at the start, sometimes split into stages. Whichever you choose, the lawyer must tell you before work starts how fees will be charged and paid, the terms should be set out in their engagement letter, fees must be fair and reasonable, and if you ask for an estimate they must tell you promptly if it looks likely to be exceeded.

Check they are a practising lawyer. Search the person's name on the Law Society's Register of Lawyers, which shows a lawyer's practising status. If a family trust holds your home or business, also see trust lawyers in Hamilton. Buying a home together? Our conveyancing guide covers the purchase side.

Ready to talk to someone? Compare family and relationship property lawyers in Hamilton in our directory.

This guide is general information, not legal advice. Talk to a lawyer about your situation.

Common questions

How long before a de facto relationship counts in NZ?

Usually three years of living together, although a shorter relationship can be covered if there is a child or a substantial contribution and not making an order would cause serious injustice.

Is KiwiSaver relationship property?

Contributions made after the relationship began, including KiwiSaver, are generally relationship property.

Is an inheritance relationship property?

Usually not, unless it gets mixed with relationship property, for example by paying down the family home's mortgage.

How long after separating can I claim relationship property?

Within one year of a divorce, or three years after a de facto relationship ends. You can ask the court for permission to apply later.

Does a prenup need a lawyer?

Yes. Each partner must get independent advice from their own lawyer, who witnesses the signature and certifies they explained the agreement.

Sources

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