For young couples using KiwiSaver and family assistance to buy a home, splitting assets after a breakup can be complex, especially if the relationship lasted less than three years.

Under the Property (Relationships) Act 1976, specific rules govern property division for relationships shorter than three years, whether marriages, civil unions, or de facto relationships.

Substantial Contributions:

If one partner made significant financial contributions to purchasing the home, such as through KiwiSaver or savings, their share in the property will reflect their input. This applies to marriages, civil unions, and de facto relationships, especially if there are children involved or if injustice would result otherwise.

Non-Financial Contributions:

Non-financial contributions, like caring for children or managing the household, can also impact property division. To exclude these contributions, consider a contracting out agreement or property sharing agreement with your partner.

Equal Contributions:

If both partners contributed equally, the home may be divided equally, regardless of the nature of the relationship.

Parental Contributions:

Parents helping with home purchases should document their contribution as a loan to protect their investment in case of a breakup.

Seek Legal Advice:

Navigating property division laws can be tricky, so consult a lawyer to understand your rights and options. Consider a contracting out agreement to clarify property division terms and avoid future disputes.

Whether you’re in a short-term relationship or planning for the future, legal advice can provide clarity and peace of mind regarding property division.