This webinar discussion is focused on New Zealand’s Relationship Property Law, which governs the division of assets and property rights among couples in various types of relationships, including marriage, civil union, and de facto partnerships. The speaker, Polina Kozlova, a specialist relationship property and trust lawyer in New Zealand explores how property is classified in relationships, the impact of living arrangements on asset division, and the significance of contracting out agreements. Polina emphasizes the importance of understanding how all assets—even those acquired before the relationship—can be considered joint property under certain conditions, the role of financial contributions, and the practical and emotional implications when couples separate.

 

Key Insights

📜 Broad scope of Relationship Property Act: The Act encompasses all material assets—from homes to trivial household items—acquired during the relationship, reflecting a holistic approach to division. This reinforces that ownership is not just a matter of legal title but of shared life and financial interdependence.

 

🕰️ Relationship duration impacts asset division: (generally) After living together for more than 3 years, the law presumes a 50/50 split on jointly acquired property, regardless of individual financial input.

 

🔄 Financial contributions vs. legal entitlements conflict: Individuals who contribute significantly more financially (e.g., larger deposits or mortgage payments) may find themselves sharing assets equally with partners who contributed less. This reflects New Zealand’s emphasis on partnership and relationship equity over financial calculations, which some find counterintuitive but aims to protect non-financial contributions and support fairness.

 

🧾 Importance of Contracting Out Agreements: Contracting out contracts allow couples to define a different property division than the default law. However, these must be drafted carefully, certified by separate lawyers, and be “fair and just,” or they risk being invalidated by courts later. The agreement requires full financial disclosure to prevent claims of unfairness.

 

⚠️ Risks of not formalizing agreements: Without formal agreements, couples risk protracted, costly legal battles during separation, often exacerbated by unclear contributions, unrecorded gifts or loans from parents, and informal financial arrangements.

 

👩‍⚖️ Legal counsel and due diligence: Lawyers have stringent duties when certifying agreements, needing to ensure clients understand long-term implications (e.g., future children, career changes). This safeguards clients but also adds complexity and costs, explaining why some delay agreements until relationships mature, increasing risk.

 

🔗 Relationship property and estate planning interplay: Relationship property rights influence inheritance significantly. Joint ownership can override wills, and property division affects what heirs receive. Hence, updating wills in tandem with relationship agreements is essential to avoid unintended disputes and protect all parties.