In New Zealand, de facto couples have almost the same legal rights as married couples after 3 years together — including property rights, inheritance claims, and relationship property splits. Many couples are unaware of this and make financial decisions without understanding the legal framework they’re operating in.
After 3 years together (or sooner if you have a child together), de facto couples are covered by the Property (Relationships) Act 1976 — the same law that governs married couples. This means most property acquired during the relationship is split 50/50 on separation. KiwiSaver balances accrued during the relationship are also relationship property. Having a Contracting Out Agreement (prenuptial equivalent) is the only way to alter these defaults.
What Is a De Facto Relationship in NZ Law?
Under the Property (Relationships) Act 1976 and the Family Proceedings Act 1980, a de facto relationship is one where two people:
- Are not married or in a civil union to each other
- Are both aged 18 or over (or have a court order)
- Live together as a couple in a genuine domestic relationship
The law looks at factors including: shared home, sexual relationship, financial interdependence, ownership of property together, commitment and care for children, and how the couple presents publicly.
There is no official registration. The relationship exists under law based on the facts.
When Does the Property (Relationships) Act Apply?
The Act applies to de facto couples when:
| Trigger | Note |
|---|---|
| Relationship has lasted 3 years or more | The main threshold |
| Relationship is under 3 years but there is a child of the relationship | The Act still applies |
| Relationship is under 3 years but one partner made a substantial contribution | A court may apply the Act |
Same-sex couples: The Act applies equally to same-sex de facto relationships.
What Is Relationship Property?
Under the Act, “relationship property” is split 50/50 on separation. This includes:
| Asset type | Relationship property? |
|---|---|
| Family home (regardless of whose name it’s in) | Yes — 50/50 |
| Family chattels (furniture, vehicles used by both) | Yes |
| KiwiSaver contributions made during the relationship | Yes — the increase in balance during the relationship is split |
| Income earned during the relationship | Yes |
| Business interests built up during the relationship | Often yes |
| Bank savings accumulated during the relationship | Yes |
Separate property (not split) includes:
| Asset type | Separate property? |
|---|---|
| Property owned before the relationship | Yes — kept by original owner |
| Inheritances received and kept separate | Yes — if not mixed with relationship property |
| KiwiSaver balance before the relationship started | Yes |
| Gifts from a third party kept separate | Yes |
KiwiSaver and De Facto Relationships
KiwiSaver is one area where many couples are surprised:
| KiwiSaver component | Relationship property? |
|---|---|
| Balance before the relationship | No — separate property |
| Contributions made during the relationship | Yes — relationship property |
| Employer contributions during relationship | Yes |
| Government contributions during relationship | Yes |
| Investment growth on relationship-period contributions | Yes |
On separation: The increase in each partner’s KiwiSaver during the relationship is calculated, then the total increase is split 50/50. If one partner contributed more than the other, the higher contributor may need to compensate the other.
KiwiSaver splits on relationship breakdown require a court order or a formal relationship property agreement — your KiwiSaver provider will need this before transferring any balance.
The Family Home — Whose Name Is It In?
The family home is relationship property regardless of whose name appears on the title.
Example: You bought a house before the relationship. After 3+ years together, your de facto partner has a legal claim to half the value of the house as it existed at the start of the relationship (the pre-relationship value is your separate property), plus half of any increase in value during the relationship.
If you bought the house during the relationship in only one name, your partner has a claim to 50% regardless of who paid the deposit.
What Happens to Finances on Separation
If a de facto relationship of 3+ years ends:
- Either partner can apply to the Family Court for a division of relationship property
- The court can make orders dividing property, requiring payments, or transferring property
- The 3-year limitation period applies — applications must generally be made within 3 years of separation
- Legal costs for contested property disputes can be $20,000–$100,000+ — most couples settle by agreement
Separation without court involvement
Most couples negotiate a division directly (sometimes with lawyers) and formalise it in a relationship property agreement without going to court. Both parties must have independent legal advice before signing.
Death — De Facto Partner Rights
If your de facto partner dies without a will (or with a will that doesn’t provide for you), you have rights:
- A claim for relationship property (half the relationship property) — same as separation
- A Family Protection Act claim — a surviving de facto partner of 3+ years can claim maintenance from the estate if the will fails to make “adequate provision”
These claims must be made within 12 months of the death.
Having a will is critical — particularly for blended families or relationships where there are children from previous relationships.
Protecting Your Finances in a De Facto Relationship
Option 1: Contracting Out Agreement (Prenup equivalent)
The only way to opt out of the standard 50/50 property split is a Contracting Out Agreement (sometimes called a prenuptial agreement, though NZ law uses the term for de facto couples as well as married couples).
A valid agreement must:
- Be in writing and signed by both parties
- Each party must have received independent legal advice before signing
- Both parties must sign a certificate that they received legal advice
Cost: $1,500 – $4,000 in legal fees (both partners need separate lawyers)
See Contracting Out Agreements (Prenups) NZ for more detail.
Option 2: Keep separate property separate
If you receive an inheritance or have pre-relationship assets, keep them in a separate account and avoid mixing them with relationship property. Once separate property is mixed with relationship property (e.g., inheritance money used to pay off the joint mortgage), it can become relationship property.
Option 3: Understand your position
Even without an agreement, simply understanding what is and isn’t relationship property helps you make informed decisions about joint purchases, mortgage contributions, and KiwiSaver.
Practical Steps for De Facto Couples
| Step | Why |
|---|---|
| Write a will (both partners) | Without a will, de facto partners may still need to go to court to claim their entitlement after a death |
| Update KiwiSaver nominated beneficiary | KiwiSaver doesn’t pass under a will — nominate your partner directly |
| Consider a Contracting Out Agreement | Especially important if one partner has significantly more pre-relationship assets |
| Review insurance beneficiaries | Ensure policies reflect your actual wishes |
| Register property correctly | If buying property together, consider whether joint tenancy (survivorship) or tenants in common (can pass separately via will) suits your situation |