Relationship property advice, Paraparaumu Waikanae Otaki

Relationship Property Advice

In considering the degree of protection required for personal assets when you enter into, or are in a relationship, there are many issues to consider and on which you need legal advice.

Some of these include:

1. What is a relationship?
There are many criteria under the Property (Relationships) Act and the Act covers marriage, defacto and civil union scenarios. You need to consider whether you are you actually in a relationship that would give rise to the presumption of equal sharing or some form of entitlement, if it were to break down at a future date.

The duration of the relationship will be relevant, as will having children while in it, or assuming parental responsibility for children.

2. What is separate property?
If your relationship was to break down or at your death, would you want to keep certain property you already owned at the commencement of the relationship or have acquired during the relationship for yourself as your “separate property” without being bound to share it?

Is property you receive by way of inheritance automatically separate property? The identification of and treatment of this property in the context of your relationship has a direct bearing on whether it is separate property.

3. What is relationship property?
To what extent has any property you owned prerelationship been intermingled in the relationship i.e. have you used income from such property for the daily living expenses you incur as a couple? What about assets acquired since the relationship began?

Do you have joint names on assets and do you operate joint accounts? Everdyday actions that you take for granted can have a direct consequence on your property entititlements.

Our Role

There are several issues to consider when looking to protect property which you would wish to keep as your separate property on entering into a relationship, or if you are already in a relationship. At Brian Ranford & Susie Mills, Kapiti Law, we advise in the areas of relationship property law including the preparation of and signing of Section 21 agreements.

We also advise on the property aspects of separation relating to the distribution of relationship property and preparation of separation agreements. We can help you decide if the following options fit your circumstances:

Transferring separate property into a Family Trust, in which you are the trustee and a beneficiary. Timing of the transfer in an important element. See further information on Family Trusts on this website.
Entering into a “Contracting Out Agreement” under Section 21 of The Property (Relationships) Act. This is an agreement that delineates separate property in the event of a relationship breakdown or death. The agreement must follow a certain format and independent legal advice for both parties must be obtained.
Keeping property, especially inheritances, in separate accounts and not allowing it to be intermingled with relationship property may assist but is not on its own conclusive in achieving protection. Make sure you get the right advice on this important aspect - you didn’t work hard to build up assets to risk losing them.