A landmark Supreme Court decision confirms copyright created during a relationship can be relationship property. Learn what this means for intellectual property in separations.

Copyright Confirmed as Relationship Property by Supreme Court in Landmark NZ Case

In a significant legal development, the Supreme Court of New Zealand has ruled that copyright created during a relationship may be classified as relationship property, opening the door for claims on intellectual property in divorce and separation proceedings.

This case involved a separated couple disputing whether copyright over artwork produced by the woman during their relationship should be considered separate property or relationship property.

Initially, the Family Court determined that while the copyright was indeed a form of property, it was the separate property of the woman, since it was derived from her individual skill and creativity.

However, the High Court and Court of Appeal disagreed. Both found that because the copyright was created during the relationship, it should be treated as relationship property, entitling the man to half its value.

The woman appealed to the Supreme Court, arguing that her skills and talents were developed before the relationship began and therefore the resulting work should remain her separate property. The Court rejected this argument, ruling that although the skills were pre-existing, the copyright itself—as a legal asset—was created during the relationship.

The Supreme Court affirmed that:

• Copyright is a form of intellectual property.

• It is transferable, saleable, and therefore qualifies as property under the Property (Relationships) Act 1976.

• Since the copyrights were acquired during the relationship, they are part of the relationship property pool.

The matter has now been referred back to the Family Court, which will determine the monetary value of the copyrights. The woman will retain ownership but must pay her ex-partner 50% of their assessed value.

What This Means for Creators and Couples

This case sets a crucial precedent for business owners, artists, and creatives in New Zealand. Any intellectual property created during a relationship—regardless of individual talent—may be subject to division on separation.

If you’re concerned about protecting your business assets, intellectual property, or creative works, it’s essential to get legal advice early. You may benefit from a contracting out agreement (prenup) or tailored estate planning to safeguard specific property.

At Core Legal, with offices in Masterton and Wellington, we offer fixed-fee initial consultations to help you understand your rights and plan accordingly.

Contact our relationship property team today to ensure your intellectual property and personal assets are protected.