Is Your Property Protected?

Entering a serious relationship means confronting a question few couples enjoy discussing: what happens to your property if things end, whether through separation or death? Fortunately, New Zealand law offers a way to answer that question on your own terms, rather than leaving it to a default formula.

Under the Property (Relationships) Act 1976, couples in a qualifying relationship—de facto, marriage, or civil union—for three years or more will generally have their relationship property divided equally if they separate. This equal-sharing rule aims for fairness, but it doesn’t always feel fair in practice. Someone who brought significantly more assets into the relationship, or who wants a specific inheritance or family property protected, may find the default regime doesn’t reflect their intentions.

This is where a relationship property agreement (RPA) comes in. An RPA lets you and your partner contract out of the Act’s equal-sharing regime and set your own rules for dividing property—whether that division happens on separation or death. The agreement can define exactly what counts as relationship property, what remains separate, and how each will be treated.

Protecting What You Bring Into the Relationship

If you own significant assets before the relationship begins—a house, a business, an investment portfolio—an RPA can help ensure they stay yours if the relationship ends. Without one, those assets can gradually become relationship property, particularly once both partners start using or contributing to them.

Safeguarding Inheritances and Family Property

Inheritances and gifts are usually treated as separate property under the Act, but that protection isn’t automatic or permanent. If you use an inheritance to pay down a joint mortgage, for example, it can lose its separate status and become part of the shared pool. An RPA can ring-fence these assets from the outset, keeping them with the person they were intended for.

Recognising Contributions to Joint Purchases

An RPA can also account for what each partner puts into a joint purchase, such as a family home. Rather than treating the whole asset as jointly owned by default, the agreement can record each partner’s contribution as separate property to be returned to them, with any remaining balance divided as agreed—proportionately, equally, or otherwise. RPAs can also address what happens to a family trust if the relationship ends.

Bringing Certainty to Your Estate Planning

Because an RPA can override the Act’s default entitlements, it’s a valuable estate planning tool. This matters especially if you have children from a previous relationship and want to make sure they’re provided for, regardless of what happens in your current relationship.

When to Enter Into an RPA

You can sign an RPA at any point, but it’s best done before the three-year threshold applies. From there, it’s worth reviewing the agreement every three to five years, or sooner if your circumstances—financial or otherwise—change significantly.

Marriage, civil union, and de facto relationships all carry real consequences for your property. A relationship property agreement is one of the most effective tools for keeping control of your assets, both during the relationship and after it. If you’d like tailored advice on protecting your property, Freebairn and Hehir Lawyers can help.