How assets are divided at the end of a relationship is governed by the Property (Relationships) Act 1976 (“the Act”).
The Act provides that if parties have been married, in a civil union or a de facto relationship (or a combination of these) for more than three years then any assets which are relationship property will be divided equally between them.
Assets which are deemed to be relationship property will include;
- The home that the couple lived in, if owned by one or both of them (the Family Home),
- Household furniture and chattels,
- Vehicles used for a relationship purpose,
- Income earned during the relationship, including savings, superannuation, kiwisaver,
- Any other assets acquired during the relationship for the benefit of the relationship or from relationship property income.
Assets which are not relationship property (separate property) are able to be retained by the spouse who owns them. Separate property will include;
- Savings or investments accumulated prior to the relationship, including Kiwisaver,
- Inheritances received before or during the relationship,
- Investment property acquired before the relationship,
However, if any separate property is used for a relationship purpose eg to buy the Family Home or pay the mortgage on the Family Home then it ceases to be separate property and becomes relationship property.
