Want to understand property division for short relationships? The Property (Relationships) Act 1976 (“the Act”) is the principal piece of legislation that governs relationship property division in New Zealand. Under the Act, the general rule is that once you have been in a relationship for three years or more (whether this be a marriage, civil union, or de facto relationship), relationship property is divided equally – but what happens if the relationship ends before that point? Do you have any rights in respect of property division?

De facto relationships of short duration

What is a de facto relationship of short duration?

A de facto relationship of short duration is generally one that has lasted for a period of less than three years. In saying that, there are circumstances where the Court may consider it just to treat a de facto relationship of more than three years a relationship of short duration (for example, if the quality of the relationship was poor).  

For a relationship to be considered ‘de facto’, you must be “living together as a couple”. This needs to be more than just dating, though it doesn’t necessarily have to mean living together in the literal sense. To determine whether you are “living together as a couple” other factors are taken into account, such as financial dependence (or interdependence), the purchase of property, the care of children, the mutual commitment to a shared life, and the public reputation of the relationship.

These factors are a guide, and there is no clear-cut method to determine when a de facto relationship began – it is a factual enquiry and can often be difficult to determine. It can also be difficult to pinpoint when exactly a de facto relationship ends, though case law indicates it needs to be more than just a physical separation, and that it is necessary for at least one party to have a “mental attitude adverse to cohabitation”.

How is property divided following the end of a de facto relationship of short duration?

The rules of division in the Act typically do not apply to de facto relationships of short duration, unless the following circumstances apply:

  • There is a child of the relationship OR one of the partners has made a substantial contribution to the relationship; and
  • It would result in serious injustice if the Court did not make orders as to property under the Act.

If the Court is satisfied the above factors are made out, the share of each partner in relationship property(being any property acquired together during the relationship) is in accordance with each partner’s contributions to the relationship. Contributions are not just financial – consideration is had to non-financial contributions, such as the care of children.

If the above factors are not made out, the relationship and property division will generally not come within the scope of the Act.

Marriages of short duration

The law treats marriages of short duration differently to de facto relationships of short duration. The Act does apply to marriages of short duration (though there are still key differences to how it applies torelationships that are over three years).  

What is a marriage of short duration?

A marriage of short duration is one where the parties have been married for a period of (generally) less than three years.

It is worth noting that if a couple was in a de facto relationship prior to their marriage, the period of which they were in a de facto relationship is treated as part of the marriage. For example, if the couple was in a de facto relationship for two years, then married for two years, the marriage would be treated as if it was four years.

How is property divided following the end of a marriage of short duration?

If the family home and/or family chattels (e.g. vehicles, household furniture and appliances, and any other items used for family or household purposes) were purchased by the couple during the marriage, this is generally divided equally.

If the family home and/or family chattels were acquired prior to the relationship, inherited, received as a beneficiary of a trust, or gifted by a third party, and the contribution of one spouse has clearly been disproportionate, each spouse’s share in the property is determined in accordance with their contributions to the marriage. This is different from a relationship of over three years, where the family home and chattels will generally be divided equally, no matter if they were acquired prior to the relationship, inherited, or gifted.

All other relationship property (for example, money in bank accounts, the increase in any superannuation schemes during the relationship, investments) is generally divided equally, unless one spouse’s contribution has been clearly greater. If that is the case, the property will be divided according to contributions to the marriage.

Want to learn more? 

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