KiwiSaver is relationship property in New Zealand — which means it must be considered when a relationship ends. How it’s divided, when it’s divided, and what process applies can be confusing. Here’s a plain-English guide.
Is KiwiSaver Relationship Property?
Yes — in most circumstances, KiwiSaver accumulated during a qualifying relationship is relationship property under the Property (Relationships) Act 1976.
This applies to:
- Married couples
- Civil union partners
- De facto couples (living together for 3 years, or less if there’s a child of the relationship or one partner has made substantial contributions)
Which Part of KiwiSaver Is Relationship Property?
Not necessarily all of your KiwiSaver balance. The Act distinguishes between:
| Portion | Classification |
|---|---|
| Contributions made during the relationship | Relationship property |
| Contributions made before the relationship | Separate property |
| Growth on separate property contributions | May be relationship property (complex — legal advice needed) |
| Employer contributions made during the relationship | Relationship property |
| Member tax credits earned during the relationship | Relationship property |
The result: If you had $15,000 in KiwiSaver before entering the relationship and $60,000 was accumulated during it, the $15,000 may be your separate property and only the $60,000 is subject to equal sharing.
Calculating this requires records from your KiwiSaver provider. Most providers can supply a statement of contributions history.
How Is KiwiSaver Divided?
Under the Act, relationship property is divided equally (50/50) unless a Contracting Out Agreement (pre-nup or post-nup) provides otherwise.
However, KiwiSaver cannot simply be transferred to a partner’s bank account — it must remain in the KiwiSaver system.
The three main ways KiwiSaver is dealt with in separation:
1. Transfer to the other partner’s KiwiSaver account
The most common approach. A portion of one partner’s KiwiSaver balance is transferred directly to the other partner’s KiwiSaver account. Both parties must consent and your providers facilitate the transfer.
This is the only way to split KiwiSaver while preserving it — funds transferred between KiwiSaver accounts remain in the KiwiSaver scheme.
2. Offset against other property
Instead of splitting KiwiSaver directly, the parties may agree that one keeps their KiwiSaver in full in exchange for the other keeping a greater share of other property (e.g. the house equity, a vehicle, savings).
Example: Partner A has $80,000 KiwiSaver; Partner B has $20,000 KiwiSaver. Rather than split both 50/50, Partner A keeps their full KiwiSaver but Partner B gets $30,000 more of house equity.
This approach is common and avoids the administrative complexity of KiwiSaver transfers.
3. Court order
If parties cannot agree, a Family Court can make an order for KiwiSaver to be divided and transferred. The court applies the Property (Relationships) Act — equal sharing is the starting point.
Can You Access KiwiSaver Early Due to Relationship Breakdown?
No — relationship breakdown is not a qualifying reason for early KiwiSaver withdrawal. Even if you’re in financial hardship as a result of separation, the hardship criteria apply on their own merits, not because of the separation itself.
If you’re genuinely unable to meet minimum living expenses following a separation, you may qualify for a significant financial hardship withdrawal — but this is assessed on your financial situation, not the fact of separation.
What Happens If Your Partner Won’t Cooperate?
If your ex-partner refuses to participate in a division of relationship property:
- Solicitor letter — a formal legal request often prompts action
- Mediation — Relationship Services and other NZ providers offer separation mediation
- Family Court application — you can apply to the Family Court for a division of relationship property. The court can make binding orders
KiwiSaver providers will not transfer funds without either mutual consent from both parties or a court order. You cannot force a transfer without one of these.
Contracting Out Agreements (Pre-nups and Post-nups)
A Contracting Out Agreement — commonly called a pre-nuptial or post-nuptial agreement — allows couples to agree in writing how property (including KiwiSaver) will be divided if they separate. It overrides the Act’s default equal-sharing rule.
Requirements:
- Both parties must have independent legal advice before signing
- Must be in writing and signed by both parties
- Must be witnessed by a lawyer
A valid Contracting Out Agreement can specify that each partner keeps their own KiwiSaver balance regardless of when it was accumulated — or any other arrangement the parties agree to.
Practical Steps After Separation
- Get your KiwiSaver balance statement — contact your provider for a full contributions history so you can identify the relationship-property portion
- Get independent legal advice — separation property can be complex; DIY approaches often lead to errors or inequitable outcomes
- Consider mediation before going to court — faster, cheaper, and less adversarial
- Notify your KiwiSaver provider of your updated contact details and bank account — ensure communications go to the right address
Frequently Asked Questions
Does my partner automatically have a right to my KiwiSaver? Not automatically — they must make a claim under the Property (Relationships) Act. If you separate and don’t address KiwiSaver as part of the property settlement, it may be left unresolved. It’s better to deal with all relationship property at the time of separation.
Can my KiwiSaver be split if we weren’t married? Yes — de facto couples who have lived together for 3 years (or less in certain circumstances) are subject to the same relationship property rules as married couples.
What if I don’t have a KiwiSaver account and my partner does? The relationship-property portion of their KiwiSaver can be transferred to a KiwiSaver account you open specifically for this purpose. You don’t need to have had a KiwiSaver account prior to separation.
How long does the process take? By consent (both parties agree), a KiwiSaver transfer can be arranged within a few weeks. Court orders can take months. Mediation is typically faster than court.
Is the transfer of KiwiSaver as part of a property settlement taxable? No — transfers of KiwiSaver between accounts pursuant to a relationship property division are not treated as taxable income.