Core Legal | Commercial Property Lawyers in Masterton & Wellington

The division of relationship property can be complex, particularly where relationships do not follow traditional structures. A recent New Zealand court decision has confirmed that the Family Court has jurisdiction to divide relationship property in polyamorous or multi-partner relationships, which is a significant development in family law. At Core Legal Masterton & Wellington, we assist clients in understanding their rights and protecting their interests when relationships end.

Background to the Multi-Partner Relationship Case

The case involved three individuals who had been in a long-term polyamorous relationship and jointly owned a family home for approximately 15 years. Two of the individuals were legally married, while the third partner had been part of the relationship for more than three years.

When the relationship ended, the parties were unable to agree on how their assets, particularly their jointly owned home, should be divided. The property had a capital value of approximately $2.175 million in 2017, making the dispute financially significant.

One party applied to the Family Court seeking orders for the division of relationship property. Initially, both the Family Court and the High Court ruled that they lacked jurisdiction to determine property disputes involving more than two partners. However, this position changed following an appeal.

Court of Appeal and Supreme Court Decisions

The Court of Appeal overturned the earlier rulings, determining that the Family Court does have the authority to divide property in multi-partner relationships. The Court confirmed that the principles of the Property (Relationships) Act 1976 could apply in polyamorous relationships in much the same way they apply to marriages, civil unions, and de facto relationships.

The matter was then appealed to the Supreme Court, which upheld the Court of Appeal’s decision. The case was returned to the Family Court to determine how the property should be divided.

The Family Court’s Final Decision

The Family Court considered several key questions, including:

• Whether the relationship qualified under New Zealand relationship property laws

• How the relationship property should be divided

• Whether any adjustments to equal sharing were necessary

The Court determined that all three individuals were in a qualifying relationship under the Property (Relationships) Act. Because two partners were married and the third had been part of the relationship for over three years, the relationship property was subject to the principle of equal sharing.

As a result, the Family Court ordered that the family home be divided equally between the three partners. One party was required to pay more than $600,000 to each of the other partners to buy out their respective shares in the property.

Why This Decision Matters

This case highlights that New Zealand courts are prepared to recognise and deal with the complexities of modern relationships. It also demonstrates the importance of planning ahead when entering shared financial arrangements, particularly in multi-partner relationships.

Without clear agreements in place, parties risk costly disputes and unexpected financial consequences if the relationship ends.

Protecting Your Relationship Property Interests

Individuals in non-traditional relationships should consider entering into contracting out agreements (often referred to as relationship property agreements). These agreements allow partners to set out how assets will be divided if the relationship ends, providing certainty and reducing the likelihood of disputes.

At Core Legal Masterton & Wellington, our experienced family lawyers can provide tailored advice and assist with preparing legally binding agreements designed to protect your interests. We also offer fixed-fee initial consultations to help clients understand their options and legal position.

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Frequently Asked Questions (FAQ)

Can relationship property laws apply to polyamorous relationships in New Zealand?
Yes. Recent court decisions confirm that the Family Court has jurisdiction to divide relationship property in qualifying multi-partner relationships.

What is a qualifying relationship under New Zealand law?
A qualifying relationship includes marriages, civil unions, and de facto relationships lasting three years or more. Courts may recognise multi-partner relationships if they meet these criteria.

How is relationship property usually divided?
Relationship property is generally divided equally between partners, although adjustments may be made in certain circumstances.

What happens if partners cannot agree on property division?
If agreement cannot be reached, the Family Court can make binding orders determining how assets should be divided.

Can partners protect their assets before entering a relationship?
Yes. Contracting out agreements allow partners to determine how property will be divided if the relationship ends.

Why is legal advice important in multi-partner relationships?
Because relationship property laws are complex and evolving, legal advice helps ensure agreements are enforceable and reflect each partner’s intentions.

When should I seek legal advice about relationship property?
You should seek legal advice when entering a relationship involving shared assets, purchasing property together, or if a relationship is ending and property division is required.