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Matrimonial Property Division in New Zealand: What You Need to Know

When a marriage or de facto relationship ends in New Zealand, one of the most critical issues to resolve is the division of matrimonial property. Matrimonial property, also known as relationship property, includes assets and debts acquired during the relationship. In this article, we’ll discuss how matrimonial property is divided in New Zealand and what factors are considered by the family court and family law solicitors.

The Property (Relationships) Act 1976

Matrimonial property division in New Zealand is governed by the Property (Relationships) Act 1976. This legislation sets out the rules for dividing property when a marriage, civil union, or de facto relationship of at least three years ends. The Act defines relationship property as:

“(a) the family home whenever acquired; and

(b) family chattels whenever acquired; and

(c) all property owned jointly or in common in equal shares by the husband and the wife or by the partners; and

(d) all property owned by either spouse or partner immediately before their marriage, civil union, or de facto relationship began, if—

(i) the property was acquired in contemplation of the marriage, civil union, or de facto relationship; and

(ii) the property was intended for the common use or common benefit of both spouses or partners; and

(e) subject to sections 9(2) to (6), 9A, and 10, all property acquired by either spouse or partner after their marriage, civil union, or de facto relationship began; and

(ee) subject to sections 9(3) to (6), 9A, and 10, all property acquired, after the marriage, civil union, or de facto relationship began, for the common use or common benefit of both spouses or partners, if—

(i) the property was acquired out of property owned by either spouse or partner or by both of them before the marriage, civil union, or de facto relationship began; or

(ii) the property was acquired out of the proceeds of any disposition of any property owned by either spouse or partner or by both of them before the marriage, civil union, or de facto relationship began.”

Equal Sharing Presumption

The Property (Relationships) Act 1976 operates on the presumption that relationship property should be divided equally between the parties. This means that, in most cases, each party is entitled to a 50% share of the relationship property, regardless of who purchased the property or whose name it is in.

However, there are some exceptions to this rule. For example, if one party has contributed significantly more to the relationship property than the other, or if dividing the property equally would lead to a serious injustice, the court may decide to divide the property unequally.

Separate Property

Not all property owned by the parties is considered relationship property. Separate property, which is not subject to division under the Act, includes:

• Property owned by either party before the relationship began
• Inheritances or gifts received by one party during the relationship
• Property acquired after the relationship ended

However, separate property can become relationship property if it is intermingled with relationship property or if the non-owning party has contributed to its improvement or maintenance.

Resolving Property Disputes

If the parties cannot agree on how to divide their property, they may need to seek the assistance of a family lawyer or go to court. In court, a judge will consider various factors when deciding how to divide the property, including:

• The length of the relationship
• The financial contributions of each party
• The non-financial contributions of each party, such as caring for children or maintaining the home
• The future needs of each party
• Any agreements made by the parties during the relationship

For more information on matrimonial property division and other aspects of family law, check out Naomi Cramer’s YouTube channel, where she provides insightful legal advice and discusses various family law topics.

Seeking Legal Advice

Dividing matrimonial property can be a complex and emotional process, especially if there are significant assets involved or if the parties cannot agree. It’s essential to seek the advice of an experienced family law solicitor who can help you understand your rights and obligations under the law and represent your interests in court if necessary.

A skilled family lawyer can also help you negotiate a fair settlement with your ex-partner, potentially avoiding the need for costly and time-consuming litigation. They can advise you on the likely outcome of your case and help you make informed decisions about your future.

No solicitor-client relationship is created by this article. The author and owner shall not be liable for your reliance on the information contained in this article. Readers should obtain their own independent legal advice.