A common concern during separation and property division in New Zealand is “occupational rent.” This arises when one partner continues to live in the family home while the other moves out.

Occupational rent is a concept where the person living in the home compensates the departing partner. Typically, it’s calculated as half of the market rental value, supported by evidence from a rental agent or valuer.

This compensation is rooted in section 18B of the Property (Relationships) Act 1976, allowing the court to compensate parties for post-separation contributions. These contributions can be financial or non-financial, such as providing a home for the other party.

It’s essential to understand that occupational rent isn’t automatically owed once one person moves out. It’s at the court’s discretion, granted if deemed fair and just considering the circumstances.

Factors considered include:

– Financial circumstances of each party, including accommodation costs.

– Continued care for children.

– Delays in property division or claims.

– Rentability of the property.

– Balance of outgoings and potential rental income.

– Changes in property value since separation.

Another claim option is “use of money interest,” where interest is paid on a person’s share of equity. The court has discretion in determining the amount payable.

For properties owned by trusts or companies, the legal landscape differs.

The appropriate claim type depends on case specifics. Seeking early legal advice during separation is crucial to protect your interests.