How are assets divided in a divorce in New Zealand?

If a couple has been married, in a civil union, or in a de facto relationship — meaning living together as a couple — for at least three years, their relationship property is usually divided equally on separation.

Equal sharing is the default. It captures most of what a couple builds together during the relationship, regardless of whose name is on the title or who paid for what. The threshold question in almost every case is not "who owns this?" but "is this relationship property or separate property?"

Relationship property is the pool that gets divided. It includes the assets the couple acquired or used together during the relationship, even if one partner paid for them or holds them in their sole name.

Separate property sits outside the equal-sharing pool. It usually stays with the original owner — but only if it has been kept separate. Once separate property is intermingled with relationship property (for example, an inheritance used to pay down the family home mortgage), it can lose its protected status and become relationship property.

The 50/50 rule is the default, not the rule. There are recognised situations where the Court will depart from it.

Short relationships are treated differently. Where a marriage, civil union or de facto relationship lasted less than three years, division is based on contributions rather than an automatic 50/50 split. The Court considers financial contributions, child-rearing, and non-financial contributions such as housework or supporting a partner's career.

Economic disparity claims are designed to compensate a partner who is left in a significantly worse financial position after separation — a classic example is the stay-at-home parent who has limited income or career prospects after years out of paid work. Where one person's earning capacity has clearly been advanced by the relationship while the other's has been held back, the Court can award the disadvantaged partner a larger share.

Beyond those, s13 allows departure only where there are extraordinary circumstances that would make equal sharing of the relationship property repugnant to justice — a deliberately high threshold that the courts apply sparingly.

Couples can agree in advance how their property will be divided if they separate. These are commonly known as prenups (entered into before the relationship) or postnups (entered into during it), and the Act calls them contracting out agreements.

Strict formalities apply. The agreement must be in writing and signed by both parties, and each party must have independent legal advice before signing. A contracting out agreement that does not meet these requirements is at serious risk of being set aside.

If a couple cannot agree on how their property should be divided, the Family Court can step in and decide. In practice, mediation is often encouraged before proceedings are commenced — most relationship property matters resolve by negotiation or mediated agreement rather than a contested hearing.

Where the Court does decide, it works through the Property (Relationships) Act framework: identify the relationship property pool, identify any separate property, apply the equal-sharing rule, and then consider whether any of the recognised exceptions apply.

KiwiSaver is treated as part of the relationship property pool to the extent that contributions were made during the relationship. Contributions made before the relationship started are typically separate property and stay with the original owner.

If the parties agree, the split can be dealt with by a relationship property agreement (with independent legal advice on both sides). If they cannot agree, the Family Court can order a portion of one person's KiwiSaver to be transferred to the other's KiwiSaver account. KiwiSaver cannot be cashed out early to settle a relationship property claim — it can only be transferred between KiwiSaver accounts. Where both partners have KiwiSaver of similar value, the division often balances out and no transfer is required.

For relationships under three years, KiwiSaver may not be split at all unless there are exceptional circumstances, such as significant contributions made by one party.