When we think about legal protections in relationships, we often focus on wills, marriage certificates, or divorce proceedings. But what about protecting your property before, during, or even after a relationship? That’s where a Relationship Property Agreement can make a real difference. Whether you’re entering a new relationship, combining finances with your partner, or planning for the future, a tailored agreement provides clarity, fairness, and peace of mind.So what exactly is a Relationship Property Agreement, and why might you need one? Here’s a practical guide to how it works and how a lawyer can help.What Is a Relationship Property Agreement?Under New Zealand’s Property (Relationships) Act 1976 (PRA), once you’ve been in a qualifying relationship (marriage, civil union, or de facto partnership for three years or more) the law generally presumes that property acquired during the relationship is shared equally, regardless of who paid for it.A Relationship Property Agreement (also called a contracting out agreement or a prenup) allows you and your partner to agree not to follow the default 50/50 rule, and instead decide for yourselves how your property should be owned or divided.Why Consider One?Without a formal agreement, you may find that your individual contributions or personal intentions aren’t legally recognised. Common situations where an agreement can help include:Keeping inherited or pre-relationship property separateClarifying contributions to a jointly owned home or investmentsProtecting business or trust interestsSetting expectations around financial outcomes in the event of separationBy clearly outlining how property will be handled, a Relationship Property Agreement helps avoid disputes and misunderstandings in the future.What Can the Agreement Cover?Each agreement is tailored to your circumstances, but commonly includes:Ownership of pre-existing assets or family inheritancesContributions toward property, mortgage and household expensesWhat happens to shared or separate assets if the relationship endsOptions for buying the other out or selling a shared propertyHow to treat debts, trusts, or loans from familyArrangements regarding children or future changes in circumstances Legal Requirements in New ZealandTo be legally enforceable under the PRA, your Relationship Property Agreement must meet strict formalities:Be in writingBe signed by both partiesEach party must receive independent legal advice from a separate lawyerEach lawyer must certify they have explained the effects and implications to their clientThese steps ensure that both parties fully understand the agreement and are entering into it voluntarily and fairly.The Role of a LawyerA lawyer experienced in relationship property law will:Ensure the agreement reflects your true intentionsDraft clear, enforceable terms that comply with the PRAAdvise on what’s fair and appropriateHelp review and update the agreement as your situation changesCommon Pitfalls to AvoidDIY or informal agreements are not legally validVague or overly broad clauses can lead to confusion or disputesOutdated agreements may no longer reflect your current assets or intentionsWhen Should You Make One?The ideal time is before moving in together or acquiring significant assets, but you can make a Relationship Property Agreement at any stage, even after many years together.It’s also wise to review your agreement periodically, especially after major life events like buying property, starting a business, or having children.SummaryA Relationship Property Agreement gives you and your partner control and certainty over how your property is managed, now and in the future. It protects your interests, minimises risk, and ensures that your intentions are understood and respected.At Macalister Mazengarb, our experienced relationship property lawyers can guide you through the process with clarity, care and expertise. Contact us today to start a conversation about securing a legally sound agreement tailored to your needs.
