Blog Post

What is the difference between Relationship and Separate Property

Debbie Bryan-Lamb • May 27, 2019

Under the Property (Relationships) Act 1976 the general rule is that if a couple have been living together for three or more years, all of their relationship property will be divided equally (with some exceptions). Relationship property can include:
• The home where you live in as a couple;
• Family chattels;
• Motor vehicles used during the relationship;
• Bank accounts and any money saved which exists as at date of separation;
• The value of any KiwiSaver Superannuation policy;
• Income earned during the relationship;
• A business/company shares;
• Any debts existing as at date of separation.

If during the relationship either partner’s income was used to invest in such assets, any increase in the value of such assets could become relationship property depending upon what occurred with such funds.

Separate property can include:
• All property acquired by either party prior to the relationship which is not relationship property (ie gifts and inheritances).

Such separate property assets would therefore not be available for division between a couple, but can become relationship property depending on what you do with such assets. For example, if during the relationship either partner’s income is used to invest in either party’s separate property assets (ie a business if acquired before the relationship), or intermingling occurs between separate and relationship property assets, then any increase in the value of an asset (ie business or superannuation fund) would become relationship property to be divided equally upon separation. Contributions made by a non-owning party (whether financial or non-financial as well as domestic contributions), can also create an interest in separate property assets (ie a wife assisting in the completion of Company financial accounts/administration, caring for children thereby allowing husband to focus on business).

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