Is Your Business Safe from Relationship Property Claims in New Zealand?

The Business Risk Nobody Talks About

You've built your business from the ground up. Late nights, early mornings, every dollar reinvested back into growth. But here's a question that might keep you up at night: what happens to your business if your relationship ends?

The short answer: it depends. The long answer: it's complicated, and you need to protect yourself now.

How Businesses Become Relationship Property

In New Zealand, business assets can become relationship property if:
• The business was started during the relationship
• Relationship property (like the family home) was used as security for business loans
• Your partner contributed to the business (even indirectly, like managing the household while you built the business)
• Business income supported the family lifestyle

Even if your partner never set foot in your office, they might still have a claim to your business assets.

The Scenarios That Destroy Businesses

Scenario 1: The 50-50 Split

Your business gets valued and your ex-partner gets 50% of its value. If you can't buy them out, you might have to sell the business to pay them.

Scenario 2: The Forced Sale

If the business is your main asset and there's not enough other property to split, the court might order the business to be sold.

Scenario 3: The Ongoing Partnership

Your ex-partner becomes a business partner whether you like it or not. This rarely ends well.

The SureThing Protection Strategy

Protecting your business requires multiple layers of agreements and documentation.

For Basic Business Protection: SureThing can help you create:
• Clear documentation of business ownership before the relationship
• Agreements about partner involvement (or non-involvement) in the business
• Records of separate vs. relationship property used in the business

For Comprehensive Protection: You'll need professional legal advice for:
• Contracting Out Agreements that specifically protect business assets
• Business structure advice (trusts, companies, partnerships)
• Shareholder agreements if you have business partners

The Documentation You Need Now

Pre-Relationship Business Records

Document the business value, assets, and debts before your relationship becomes legally de facto.

Contribution Records

Keep clear records of what money came from where - personal savings, business profits, relationship property, or separate property.

Partner Involvement Agreements

If your partner helps with the business, document whether this is paid work, volunteer help, or investment that creates ownership rights.

The Trust Option

Many business owners use trusts to protect business assets from relationship property claims. But trusts aren't bulletproof - they need to be set up properly and operated correctly.

Common Mistakes That Kill Businesses

Using the Family Home as Business Security

This can turn your business into relationship property.

Mixing Business and Personal Finances

Using joint accounts for business expenses or business accounts for personal expenses creates complications.

Not Documenting Partner Contributions

If your partner helps with the business, unclear arrangements about payment or ownership can create problems later.

The Bottom Line

Your business is probably your biggest asset and your main source of income. Protecting it from relationship property claims isn't just about money - it's about protecting your livelihood and your future.

Start with clear documentation and basic agreements, then get professional advice for comprehensive protection strategies.

Ready to protect your business? Start with SureThing to document business ownership and create basic protection agreements, then consult legal and business advisors for comprehensive asset protection strategies.

Because your business shouldn't become someone else's retirement plan.