Understanding the legal distinctions between a Contracting Out Agreement (commonly called a prenup) and a Relationship Property Agreement is essential when navigating the complexities of New Zealand’s relationship property law. At Core Legal, serving clients in Masterton and Wellington, we regularly assist clients in protecting their assets before, during, or after a relationship.

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???? What Is a Contracting Out Agreement?

A Contracting Out Agreement is typically signed before or during a relationship, but before the relationship reaches the legal threshold where property division laws apply—usually after three years of living together in a de facto relationship, or from the beginning of a marriage or civil union.

This agreement allows couples to “contract out” of the default rules set out in the Property (Relationships) Act 1976, which generally assumes equal sharing of relationship property after a qualifying relationship ends.

The key features of a Contracting Out Agreement include:

• Clear definition of separate vs relationship property

• Protection of pre-owned assets, family inheritances, or business interests

• A living document that can be updated as circumstances change

• Preventing future disputes by outlining agreed terms early

Entering into such an agreement early is vital. If your personal assets become intermingled with shared property or improved using relationship funds, they may lose their separate status.

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???? What Is a Relationship Property Agreement?

A Relationship Property Agreement, also known as a settlement agreement or separation agreement, is signed after a relationship ends. It outlines how the couple will divide their relationship property, which may include:

• Shared home

• Joint bank accounts

• Superannuation or KiwiSaver

• Vehicles, debt, or other jointly held assets

This type of agreement is often informed by an earlier Contracting Out Agreement (if one exists), but may also be created independently at the time of separation.

Importantly, these agreements must meet strict legal criteria to be valid, including:

• Both parties receiving independent legal advice

• Agreements being in writing and signed

• Certification by lawyers confirming legal advice was given

Once valid, a Relationship Property Agreement is intended to be full and final. It can only be overturned if it causes serious injustice to one party.

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⚖️ Why Legal Advice Is Crucial

Both Contracting Out Agreements and Relationship Property Agreements are highly technical and can have significant legal consequences if not done correctly. Mistakes or unclear terms can lead to costly disputes, especially when high-value assets or children are involved.

Whether you’re entering a new relationship, planning for the future, or going through a separation, it’s important to seek expert legal guidance.

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???? Fixed-Price Consultations Available at Core Legal

At Core Legal, we offer a range of affordable, fixed-fee initial consultations for clients across Masterton and Wellington, making it easy to understand your options and protect your interests.

Contact us today to ensure your relationship property matters are handled with care, clarity, and legal confidence.