Contracting Out of Relationship Property Act Nz

When couples in New Zealand decide to end their relationship, there are a lot of legal issues that they need to consider. One of the most important of these issues is the division of their relationship property. The Relationship Property Act 1976 in New Zealand governs the division of assets and liabilities between partners in a relationship when they split.

However, not all couples are satisfied with the provisions of the Relationship Property Act. For these couples, there is an option to contract out of the Act. This means that they can agree on how they want to divide their relationship property if they separate or divorce. This agreement is known as a contracting out agreement, or a prenuptial agreement.

There are several reasons why couples may consider contracting out of the Relationship Property Act. One of the most common reasons is that they want to protect their separate assets. For example, if one partner owns a business or has inherited property, they may want to ensure that these assets are not divided equally in the event of a separation. A contracting out agreement can specify that certain assets will belong solely to one partner, regardless of the length of the relationship.

Another reason why couples may choose to contract out of the Relationship Property Act is to avoid lengthy and costly legal battles in the event of a separation. If the couple agrees on how to divide their relationship property beforehand, they can avoid the need for a court to decide on their behalf. This saves time, money, and emotional stress for both parties.

Before entering into a contracting out agreement, it is important to seek legal advice from a qualified and experienced lawyer. The lawyer can provide guidance on the legal implications of the agreement and ensure that both parties fully understand their rights and obligations. The agreement must also be signed by both parties in the presence of independent legal counsel.

It is also important to note that contracting out of the Relationship Property Act does not mean that the Act is entirely irrelevant. If a contracting out agreement is deemed unfair or unreasonable by a court, it may be set aside in part or in full. Therefore, it is important to ensure that any agreement is fair and reasonable for both parties.

In conclusion, contracting out of the Relationship Property Act is an option for couples who want to have more control over how their relationship property is divided in the event of a separation. However, it is important to seek legal advice and ensure that any agreement is fair and reasonable before entering into it.