In New Zealand, the division of relationship property typically follows the rule of equal sharing between ex-partners after a separation. However, separate property remains with the individual who owns it. While this is the general approach under the Property (Relationships) Act 1976, certain circumstances can alter this standard division.

At Core Legal Masterton & Wellington, we help individuals navigate complex relationship property disputes and ensure their rights are protected.

Understanding Relationship Property vs. Separate Property

What is Relationship Property?

Property is usually classified as relationship property if:
✔️ It was acquired during the relationship.
✔️ It was owned before the relationship but used to contribute to the relationship.
✔️ It includes the family home, even if one partner purchased it before the relationship.

For example, if a couple lived in a home together, it is highly likely to be considered relationship property, even if one partner originally purchased it.

What is Separate Property?

Property is generally separate property if:
✔️ It was acquired before the relationship and not used for relationship purposes.
✔️ It was inherited (unless intermingled with relationship property).
✔️ It includes personal jewellery, such as engagement rings.

For example, if a person has a bank account set up before the relationship and never uses it for relationship-related expenses, it remains separate property.

When Does Separate Property Become Relationship Property?

Intermingling of Assets
Separate property can transform into relationship property if it is mixed with shared assets. For example:
🔹 If an inheritance is used to pay the family home’s mortgage, it may lose its separate status.
🔹 If separate savings are deposited into a joint account, they may be classified as relationship property.

A Recent Family Court Case: When Assets Are Divided Unequally

A young couple married for nine years separated and disputed the division of their savings and term deposits. One partner argued the funds were separate property, while the other claimed they had become relationship property.

📌 The court found that the $1,000,000 inheritance was intermingled in joint accounts and used for relationship purposes, making it relationship property.
📌 However, the court did not order a 50/50 split. Instead, the partner who contributed more assets received 70% of the funds, demonstrating that courts can apply unequal division in specific cases.

How Different Portions of an Asset Can Be Classified Separately

Sometimes, an asset may be partly relationship property and partly separate property. A good example is KiwiSaver or superannuation funds:

• If a person had $30,000 in KiwiSaver before the relationship but contributed $35,000 during the relationship, their ex-partner would be entitled to a share of only the $35,000.

Seeking Legal Advice for Relationship Property Disputes

Dividing assets can be stressful and complicated, especially when large sums, family homes, or inheritances are involved. Legal advice is crucial to ensure fair outcomes and protect your rights.

At Core Legal Masterton & Wellington, we offer fixed-price consultations to help clients quickly understand their legal options and next steps.

Contact us today to discuss your relationship property concerns with an experienced lawyer.