{"id":46,"date":"2020-10-06T03:28:55","date_gmt":"2020-10-06T03:28:55","guid":{"rendered":"https:\/\/www.relationshipproperty.co.nz\/?page_id=46"},"modified":"2021-02-02T01:57:31","modified_gmt":"2021-02-02T01:57:31","slug":"faq","status":"publish","type":"page","link":"https:\/\/www.relationshipproperty.co.nz\/faq\/","title":{"rendered":"FAQ"},"content":{"rendered":"\n<h2>\n\t\tFrequently Asked Questions\n\t<\/h2>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-0\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-0\">What is Relationship Property an Overview?<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-0\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-0\"><i>Expand<\/i><\/a>\n\t\t\n<p>The Property (Relationships) Act 1976 deals with how the property of married couples, civil union partners and de facto couples is divided when a relationship ends. The Act covers a relationship ending because of a break-up, but it can also cover a relationship ending because of the death of a spouse or partner.<\/p>\n<p>The purpose of the Act is to recognise the equal contributions of both partners to their relationship and to provide for a just division of property when their relationship ends, taking into account the interests of their children.<\/p>\n<p>The general presumption of the Act is that a couple&#8217;s property will be divided equally between them. There are exceptions to this rule, however. In particular, there are different rules about how property is to be divided where a relationship has lasted less than three years.<\/p>\n\n<p>The law relating to the division of relationship property is guided by these general principles:<\/p>\n<ul>\n<li>men and women have equal status, and their equality should be maintained and enhanced<\/li>\n<\/ul>\n<ul>\n<li>all forms of contribution to the relationship are treated as equal. This means non-financial contributions, such as caring for children, are valued equally with financial contributions, such as working for a wage<\/li>\n<\/ul>\n<ul>\n<li>a just division of relationship property needs to take into account any economic advantages or disadvantages to a spouse or partner as a result of the relationship or as a result of the ending of the relationship<\/li>\n<\/ul>\n<ul>\n<li>relationship property issues should be resolved as inexpensively, simply and quickly as is consistent with justice.<\/li>\n<\/ul>\n<p>That is the intention of the Act &#8211; unfortunately this does not always happen between parties.<\/p>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-1\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-1\">Who is covered by the Property (Relationships) Act?<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-1\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-1\"><i>Expand<\/i><\/a>\n\t\t\n<p>Whether the rules in the Property (Relationships) Act 1976 apply to you and your ex-partner depends on the type of relationship it was and how long you were together.<\/p>\n<ul>\n<li><b>Couples who&#8217;ve been together three years\u00a0<\/b>&#8211; Married, civil union and de facto couples who&#8217;ve been together for at least three years are covered by the equal-sharing rules in the Act. This means the family home, car, and furniture and appliances will usually be shared equally between them.<\/li>\n<\/ul>\n<ul>\n<li><b>Short-term marriages and civil unions\u00a0<\/b>&#8211; Married and civil union couples who&#8217;ve been together less than three years are covered by the Act. But in some cases, the family home, car and so on may be divided according to each person&#8217;s contributions to the relationship (including non-financial contributions), rather than being shared equally.<\/li>\n<\/ul>\n<ul>\n<li><b>Short-term de facto relationships usually not covered\u00a0<\/b>&#8211; De facto couples who&#8217;ve been together for less than three years usually aren&#8217;t covered by the Act at all. This means that the ordinary rules of property ownership will decide what each person is entitled to. But there are some exceptions to this. And for information about exactly what a &#8220;de facto relationship&#8221; is under the Property (Relationships) Act,\u00a0see &#8220;What is a\u00a0<a href=\"https:\/\/communitylaw.org.nz\/community-law-manual\/chapter-8-gender-and-sexuality\/sexual-orientation-and-your-rights\/marriage-civil-unions-and-de-facto-relationships-same-sex-couples\/\">&#8220;de facto relationship&#8221;<\/a>\u00a0under the Property (Relationships) Act&#8221;.<\/li>\n<\/ul>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-2\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-2\">What is a &#8220;de facto relationship&#8221; under the Act?<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-2\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-2\"><i>Expand<\/i><\/a>\n\t\t\n<p>For the purposes of the Property (Relationships) Act, a de facto relationship is a relationship between two people (whether of different sexes or the same sex) who are both aged over 18 years and are living together as a couple, but are not married to, or in a civil union with, each other.<\/p>\n<p>When deciding whether two people are living together as a couple, a number of factors are taken into account:<\/p>\n<ul>\n<li>the length of the relationship<\/li>\n<li>whether the parties are living in one house<\/li>\n<li>whether they have a sexual relationship<\/li>\n<li>the degree of financial dependence or interdependence<\/li>\n<li>how property is owned, used and obtained<\/li>\n<li>the degree of commitment to a shared life<\/li>\n<li>the care and support of children<\/li>\n<li>the performance of household duties<\/li>\n<li>the public image of the relationship.<\/li>\n<\/ul>\n<p>Whether there is a de facto relationship in terms of the Property (Relationships) Act and if there is, on what date it began, will be questions of fact for the court to decide.<\/p>\n<p>If the court decides that two people are in a de facto relationship, there is then the question of what rules will apply to the division of their property.<\/p>\n<p>The Act will usually only apply to a de facto couple if they have been together for at least three years.<\/p>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-3\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-3\">What is a short-term relationship?<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-3\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-3\"><i>Expand<\/i><\/a>\n\t\t\n<p>Under the Property (Relationships) Act, a relationship of short duration is one that lasts for less than three years. In some circumstances, where the court considers it just, a longer relationship can also be considered to be &#8220;of short duration&#8221;.<\/p>\n<p>Marriages and civil unions of short duration are covered by the Act, but special rules apply.<\/p>\n<p>De facto relationships of short duration are usually not covered by the Act unless:<\/p>\n<ul>\n<li>there is a child of the relationship, or<\/li>\n<li>one party has made a substantial contribution to the de facto relationship (including non-financial contributions), and<\/li>\n<li>the court is satisfied that failure to make an order would result in serious injustice.<\/li>\n<\/ul>\n<p>In circumstances where a relationship of short duration is covered by the Property (Relationships) Act, special rules apply to the division of the relationship property.<\/p>\n<p>In terms of working out the length of the relationship, a de facto relationship that immediately precedes a marriage is treated as if it were part of the overall length of the marriage relationship.<\/p>\n<p>Similarly, if a married couple were in a civil union before they got married or the other way round, the length of the relationship for the purposes of the Property (Relationships) Act is the total of both.<\/p>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-4\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-4\">What is usually regarded as &#8220;relationship property&#8221;?<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-4\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-4\"><i>Expand<\/i><\/a>\n\t\t<p>Relationship property and separate property<\/p>\n<p>Property is divided into two categories, relationship property and separate property.<\/p>\n\n<p>Relationship property is the property that must be divided between the parties when their relationship ends. Relationship property will usually include:<\/p>\n<ul>\n<li>family home and chattels (including the family car, household furniture and effects, and anything else owned by the family or used for family purposes). These are all usually considered relationship property regardless of who paid for them or when they were acquired.<\/li>\n<\/ul>\n<ul>\n<li>family businesses and investments (the general rule is that any business used to produce family income and any savings or investments made out of family income are treated as relationship property).<\/li>\n<\/ul>\n<ul>\n<li>property owned jointly or in equal shares by the spouses or partners.<\/li>\n<\/ul>\n<ul>\n<li>property acquired during the relationship.<\/li>\n<\/ul>\n<ul>\n<li>property acquired in contemplation of the relationship and intended for common use or common benefit.<\/li>\n<\/ul>\n<ul>\n<li>contributions to superannuation and insurance policies after the relationship began.<\/li>\n<\/ul>\n<ul>\n<li>increases in the value of relationship property, or any income from it or any proceeds from selling it.<\/li>\n<\/ul>\n<p>Note: Taonga and heirlooms are excluded from the definition of &#8220;family chattels&#8221; and so will usually be separate property rather than relationship property, but this will need to be decided on a case-by-case basis.<\/p>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-5\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-5\">What is &#8220;separate property&#8217;?<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-5\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-5\"><i>Expand<\/i><\/a>\n\t\t\n<p>Separate property is the property of each spouse or partner that is not relationship property.<\/p>\n<p>The general rule is that separate property remains the property of the spouse or partner who owns it and does not have to be divided according to relationship property law.<\/p>\n<p>Separate property includes:<\/p>\n<ul>\n<li>property acquired by either spouse or partner while they are not living together as a couple.<\/li>\n<\/ul>\n<ul>\n<li>property acquired out of separate property and any proceeds of sale of separate property.<\/li>\n<\/ul>\n<ul>\n<li>increases in value of separate property, and income, interest or dividends earned from separate property.<\/li>\n<\/ul>\n<ul>\n<li>property that a spouse or partner acquires from a third person by gift, inheritance, or because the spouse or partner is a beneficiary under a trust settled by a third person (unless this property gets mixed with relationship property).<\/li>\n<\/ul>\n<p>Note: Gifts given by one spouse or partner to the other are not relationship property unless the gift is used for the benefit of both spouses or partners.<\/p>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-6\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-6\">Can &#8220;separate property&#8221; become &#8220;relationship property&#8221;?<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-6\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-6\"><i>Expand<\/i><\/a>\n\t\t\n<p>Separate property may become relationship property if it gets mixed with relationship property or used for family purposes. For example, separate property may become relationship property where it is used to acquire or improve relationship property.<\/p>\n<p>Also, where the value of one spouse&#8217;s or partner&#8217;s separate property is increased by:<\/p>\n<ul>\n<li>the direct or indirect actions of the other spouse or partner, or<\/li>\n<\/ul>\n<ul>\n<li>the use of relationship property,<\/li>\n<\/ul>\n<ul>\n<li>then the increase in the value of the separate property is considered to be relationship property.<\/li>\n<\/ul>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-7\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-7\">If the value of separate property was affected by the other partner<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-7\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-7\"><i>Expand<\/i><\/a>\n\t\t\n<p>Where the value of one spouse&#8217;s or partner&#8217;s separate property is increased by:<\/p>\n<ul>\n<li>the direct or indirect actions of the other spouse or partner, or<\/li>\n<\/ul>\n<ul>\n<li>the use of relationship property<\/li>\n<\/ul>\n<p>then the increase in the value of the separate property is considered to be relationship property and is divided according to the contributions of each spouse or partner to the increase.<\/p>\n<p>Where the separate property of one spouse or partner has been sustained by:<\/p>\n<ul>\n<li>the direct or indirect actions of the other spouse or partner, or<\/li>\n<li>the use of relationship property<\/li>\n<li><\/li>\n<\/ul>\n<p>the court may increase the share of the other spouse or partner in the relationship property or order that they be paid compensation.<\/p>\n<p>Where the separate property of one spouse or partner has been materially reduced in value by the deliberate action or inaction of the other spouse or partner, the court may reduce the share of the other spouse or partner in the relationship property.<\/p>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-8\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-8\">What about all the &#8220;debts&#8221;?<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-8\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-8\"><i>Expand<\/i><\/a>\n\t\t\n<p>Debts are separated into two categories: personal debts and relationship debts.Personal debts are the responsibility of the person who incurred them.<\/p>\n<p>Relationship debts usually fall into one of the following categories:<\/p>\n<ul>\n<li>joint debts.<\/li>\n<\/ul>\n<ul>\n<li>common enterprise (or joint business) debts.<\/li>\n<\/ul>\n<ul>\n<li>debts incurred to acquire, improve, maintain or repair relationship property.<\/li>\n<\/ul>\n<ul>\n<li>debts incurred for the benefit of both parties in managing the household.<\/li>\n<\/ul>\n<ul>\n<li>debts incurred for bringing up children of the relationship.<\/li>\n<\/ul>\n<p>The value of the relationship property that is available to be divided is the total value of the relationship property minus the relationship debts.<\/p>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-9\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-9\">How is the value of &#8220;relationship property&#8221; worked out?<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-9\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-9\"><i>Expand<\/i><\/a>\n\t\t\n<p>The general rule is that the property being divided under the Property (Relationships) Act is valued at the date of the court hearing. However, the court does have the discretion to set a different date for valuation if it thinks it is appropriate.<\/p>\n<p>If there is any dispute about the value of property or household items, it is important for the parties to get independent valuations.<\/p>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-10\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-10\"> Are the shares always equal?<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-10\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-10\"><i>Expand<\/i><\/a>\n\t\t\n<p>If the couple cannot agree about how they will divide the relationship property, then one of them can apply to the Family Court for the property to be divided under the rules in the Property (Relationships) Act.<\/p>\n<p>If the relationship has lasted at least three years, the general rule is that relationship property is divided equally between the couple.<\/p>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-11\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-11\">At what date are the shares in relationship property determined?<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-11\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-11\"><i>Expand<\/i><\/a>\n\t\t\n<p>If the relationship has ended, the shares of each spouse or partner in the relationship property are determined as at the date the relationship ended. If the couple are still living together, their shares in the relationship property are determined at the date an application for property division is made to the court.<\/p>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-12\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-12\">Can a couple contract out of the Property (Relationships) Act?<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-12\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-12\"><i>Expand<\/i><\/a>\n\t\t\n<p>In the first instance, it is up to the couple to decide how they will divide their relationship property. If they can agree on how they will divide the relationship property, then they can do this without having to follow the rules of the Property (Relationships) Act and without having to go to court.<\/p>\n<p>However, any agreement must be in writing and must meet various legal requirements, including that the parties each get independent legal advice<\/p>\n<p>A couple can choose to share their property differently than how the Property (Relationships) Act sets out. They can do this by making a contracting out agreement (sometimes known as a &#8220;prenuptial&#8221; agreement &#8211; or &#8220;pre-nup&#8221;) which says how they want to share the property.<\/p>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-13\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-13\">When can a contracting out agreement be made?<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-13\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-13\"><i>Expand<\/i><\/a>\n\t\t\n<p>A contracting out agreement can be made at any time: upon entering a relationship, during it, or at the end of the relationship. Agreements are often used by couples entering a second or subsequent relationship later in life, especially if they already have substantial property which they wish to keep as their own separate property. It is, however, important that an agreement is made before the relationship or marriage\/civil union has lasted three years, as entitlements will change at that time.<\/p>\n<p>There are important requirements that must be complied with if the agreement is to be valid:<\/p>\n<ul>\n<li>the agreement must be in writing and signed by both parties.<\/li>\n<\/ul>\n<ul>\n<li>each party must get independent legal advice before signing the agreement. This means that the parties will need to get advice from separate lawyers.<\/li>\n<\/ul>\n<ul>\n<li>the signature of each party to the agreement must be witnessed by their lawyer.<\/li>\n<\/ul>\n<ul>\n<li>the lawyer who witnesses someone&#8217;s signature must certify that, before the person signed the agreement, the lawyer explained to that person the effect and implications of the agreement.<\/li>\n<\/ul>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-14\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-14\">Sharing may not always be equal?<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-14\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-14\"><i>Expand<\/i><\/a>\n\t\t<p>In certain situations, the Family Court can depart from the equal-sharing rules for relationship property &#8211; for instance:<\/p>\n<ul>\n<li>if equal sharing is very unfair (&#8220;repugnant to justice&#8221;).<\/li>\n<\/ul>\n<ul>\n<li>if there is economic disparity at the end of a relationship.<\/li>\n<\/ul>\n<ul>\n<li>if each party owned a home at the date the relationship began.<\/li>\n<\/ul>\n<ul>\n<li>if the value of one spouse&#8217;s or partner&#8217;s separate property has been increased, sustained or reduced by the other spouse or partner.<\/li>\n<\/ul>\n<ul>\n<li>if the relationship is of short duration.<\/li>\n<\/ul>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-15\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-15\">What if each partner owned a home when the relationship began?<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-15\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-15\"><i>Expand<\/i><\/a>\n\t\t\n<p>Sometimes, at the time when a relationship begins, both spouses or partners might own a home capable of becoming the family home. But, at the time when the relationship property is to be divided, the home (or the proceeds of the sale of the home) of only one spouse or partner is included in the relationship property.<\/p>\n<p>In these cases, the court may adjust the division of relationship property to compensate for this.<\/p>\n<p>The court may also make an adjustment if one home was sold before the relationship began because the two parties were then planning to set up house together.<\/p>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-16\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-16\">What happens if relationship property has been transferred to a trust?<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-16\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-16\"><i>Expand<\/i><\/a>\n\t\t\n<p>If a spouse or partner transfers relationship property to a trust and this has the effect of defeating the other spouse&#8217;s or partner&#8217;s claim under the Act, then the court can order compensation in one or more of the following ways:<\/p>\n<ul>\n<li>payment of a sum of money to the other spouse or partner out of relationship property or separate property.<\/li>\n<\/ul>\n<ul>\n<li>transfer of relationship property or separate property to the other spouse or partner.<\/li>\n<\/ul>\n<ul>\n<li>payment of income from the trust to the other spouse or partner.<\/li>\n<\/ul>\n<p>It is really important that all transactions which involved be thoroughly investigated.<\/p>\n\t\t\t<a href=\"#\" id=\"fl-accordion--label-17\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-17\">Other helpful links?<\/a>\n\t\t\t\t\t\t\t<a href=\"#\" id=\"fl-accordion--icon-17\" tabindex=\"0\" aria-controls=\"fl-accordion--panel-17\"><i>Expand<\/i><\/a>\n\t\t<p>Relationship Property<\/p>\n\n<p>Other Family matters<\/p>\n\n\n","protected":false},"excerpt":{"rendered":"<p>Frequently Asked Questions What is Relationship Property an Overview? Expand The Property (Relationships) Act 1976 deals with how the property of married couples, civil union partners and de facto couples is divided when a relationship ends. The Act covers a relationship ending because of a break-up, but it can also cover a relationship ending because&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"_links":{"self":[{"href":"https:\/\/www.relationshipproperty.co.nz\/wp-json\/wp\/v2\/pages\/46"}],"collection":[{"href":"https:\/\/www.relationshipproperty.co.nz\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.relationshipproperty.co.nz\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.relationshipproperty.co.nz\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.relationshipproperty.co.nz\/wp-json\/wp\/v2\/comments?post=46"}],"version-history":[{"count":13,"href":"https:\/\/www.relationshipproperty.co.nz\/wp-json\/wp\/v2\/pages\/46\/revisions"}],"predecessor-version":[{"id":175,"href":"https:\/\/www.relationshipproperty.co.nz\/wp-json\/wp\/v2\/pages\/46\/revisions\/175"}],"wp:attachment":[{"href":"https:\/\/www.relationshipproperty.co.nz\/wp-json\/wp\/v2\/media?parent=46"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}