Is Your Home Really Safe from a Relationship Property Claim?
You worked hard to buy your home. Or maybe you’ve been left an inheritance you’d like to protect. But did you know that under New Zealand law, after just three years in a relationship, your assets could be split 50/50 if things don’t work out or if you die?
That means:
The family home you purchased before your partner moved in could end up being shared equally.
The inheritance you received from your parents could be at risk.
The assets you thought you were leaving to your children may no longer be protected.
For many people, this comes as a shock… often too late.
The Solution: A Contracting Out Agreement
A contracting out agreement (sometimes called a “prenup”) is the legal tool that lets you take control of your property, rather than leaving it to the default rules of the Property (Relationships) Act 1976.
With a contracting out agreement, you and your partner can decide what assets stay separate and what is shared. This means:
Clarity and certainty: you know where you stand if the relationship ends.
Protection of pre-relationship assets: your house, business, or inheritance can remain yours.
Safeguarding family interests: you can ensure assets are preserved for your children or kept in the family.
Less risk of costly disputes: a clear agreement now avoids bitter, expensive legal battles later.
Making It Legal
To be enforceable, a contracting out agreement must:
Be in writing and signed by both of you.
Be signed after each of you receives independent legal advice from separate lawyers.
Be certified by your lawyers, to confirm you both understand the agreement.
Final Thought
It may feel unromantic to plan for the “what ifs,” but protecting what you’ve worked hard for is too important to leave to chance. A contracting out agreement gives you peace of mind and keeps control in your hands.
Need tailored advice?
If you’d like advice tailored to your situation, talk to us about putting a contracting out agreement in place.
This blog is for general information only and does not constitute legal advice. For advice about your specific situation, contact us for further information.
Email nicole@gallie.co.nz or phone 07 872 0560
Email page@gallie.co.nz or phone 07 872 0560
