Property (Relationships) Act New Zealand: Complete Guide to the 50-50 Rule

The Law That Splits Everything 50-50 (Whether You Like It or Not)

The Property (Relationships) Act 1976 is probably the most important law you've never heard of. It's the reason your ex gets half your stuff when you break up, and it applies to way more relationships than you think.

Here's what every Kiwi couple needs to know about this law and how to work with it (or around it).

The 50-50 Rule Explained

New Zealand has an "equal sharing" rule for relationship property. When marriages, de facto relationships, or civil unions end, everything acquired during the relationship gets split 50-50. No exceptions, no "but I paid for it," no "it's not fair."

This includes:
• The family home
• Household items and furniture
• Cars bought during the relationship
• Bank accounts and investments
• KiwiSaver contributions
• Even debt acquired during the relationship

What Stays Separate (Usually)

Separate Property includes:
• Assets owned before the relationship
• Gifts and inheritances from third parties
• Personal items like clothing and jewelry
• Property acquired after separation

But here's the catch - separate property can become relationship property if it gets mixed up with joint assets or used for the family benefit.

When the 50-50 Rule Doesn't Apply

You can "contract out" of the equal sharing rule with a Contracting Out Agreement (prenup). This lets you decide how to divide property instead of letting the law decide for you.

The SureThing Approach to Property Protection

Understanding the law is one thing - protecting yourself is another.

For Simple Asset Documentation: SureThing can help you create clear records of what each person owns before the relationship starts. This documentation becomes crucial if you ever need to prove what was separate property.

For Full Legal Protection: Contracting Out Agreements require independent legal advice and certification. It's the only way to legally override the 50-50 rule.

The Three-Year Trap

De facto relationships become subject to the Property (Relationships) Act after three years of living together. But the courts can apply the law earlier if:
• You have children together
• One person made substantial contributions to the relationship
• One person would suffer serious injustice without property division

Common Mistakes That Cost Big

Mixing Separate and Joint Property

Using inheritance money to pay the joint mortgage can turn your inheritance into relationship property.

Not Documenting Pre-Relationship Assets

Without clear records, proving what was separate property becomes nearly impossible.

Assuming the Law Won't Apply to You

"We're just flatmates" or "it's not serious" doesn't protect you if the relationship becomes legally de facto.

Protecting Yourself Before It's Too Late

Document Everything Early: Create clear records of what each person owns before moving in together. SureThing makes this simple and affordable.

Keep Separate Property Separate: Don't mix inheritance money with joint accounts or use separate assets for joint expenses.

Get Professional Advice for Complex Situations: If you have significant assets, business interests, or family money involved, invest in proper legal protection.

The Bottom Line

The Property (Relationships) Act isn't going anywhere, and it applies to more relationships than most people realize. You can either work with the law by understanding it and protecting yourself, or you can ignore it and hope for the best.

We recommend the first option.

Ready to document your assets and protect your property? Start with SureThing for simple asset documentation, then consult legal professionals for comprehensive property protection strategies.