Choosing to separate is hard enough – understanding how your assets are divided shouldn’t make it harder. This guide from Sharon Chandra Barrister explains how divorce settlements work under New Zealand law, from who gets the house to what happens when one spouse earns less. You’ll learn how to reach a fair agreement and what legal steps to take to ensure it’s binding.
Key Takeaways
- In New Zealand, relationship property is usually split 50/50 under the Property (Relationships) Act 1976.
- A court can award compensatory payments in certain circumstances if one partner’s income is significantly higher than the others due to things like caring for children or staying at home.
- A Relationship Property Agreement makes your settlement legally binding – it must be in writing, signed, and independently witnessed by two lawyers.
- Factors such as when property was acquired and the duration of the relationship can affect what’s considered “fair.”
- Mediation or lawyer-assisted negotiation can help you reach agreement before court involvement.
What is included in a divorce settlement in NZ?
A divorce (formally called a dissolution of marriage) ends the marriage but does not automatically divide assets. Property division falls under the Property (Relationships) Act 1976, which governs how assets and debts are shared between partners after separation.
Relationship property usually includes:
- The family home (owned personally by one or both spouses/partners) and vehicles
- Savings, investments, and KiwiSaver funds accumulated during the relationship
- Household contents and furniture
- Debts or loans taken out jointly or for the benefit of both spouses/partners or children
Separate property includes assets owned before the relationship (other than the family home), inheritances, or gifts – unless they’ve been mixed with relationship property (for example, using an inheritance to fund renovations on the family home).
For a more detailed breakdown of this subject, see our blog about relationship property in New Zealand.
Do I have to give my spouse/partner half of everything?
Usually, yes, if you’ve been married or in a de facto relationship for three years or longer.
New Zealand law assumes both partners contributed equally, even if one earned less or stayed home to raise children.
However, certain exceptions exist. You might not need to divide everything equally if:
- The relationship was short-term (under three years).
- There’s a prenup or Contracting Out Agreement in place.
- Equal division would be unfair or unjust due to extraordinary circumstances (this only applies in limited circumstances).
If you’re unsure where you stand, it’s best to get tailored advice from an Auckland divorce lawyer who can interpret how the Act applies to your situation
Who gets the house in a divorce in NZ?
The family home is typically classified as relationship property (if it is owned personally by one or both partners), even if it was purchased by one partner before marriage. This means it’s usually divided equally unless you’ve signed a Contracting Out Agreement (often called a prenup).
In practice, this can mean:
- One partner buys out the other’s share.
- The house is sold, and proceeds are split.
- Assets are offset (e.g. one partner keeps the house, the other retains investments).
How long does a divorce take in NZ?
You can apply for divorce after being separated for at least two years.
If both parties agree and the paperwork is complete, the process usually takes 6–8 weeks through the Family Court.
Property settlement discussions, however, can take longer depending on negotiation and valuation requirements.
How do you make your settlement legally binding?
To formalise your agreement under NZ law:
- Put the terms in writing.
- Ensure both parties sign voluntarily.
- Obtain independent legal advice (each with your own lawyer).
- Have both lawyers witness and certify the document.
This creates a binding Relationship Property Agreement, recognised by the courts and enforceable if disputes arise later.
What if we can’t agree on a settlement?
When negotiation breaks down, options include:
- Mediation: facilitated discussion to reach common ground.
- Lawyer-assisted negotiation: where your lawyer represents your position in structured talks or correspondence.
- Family Court: as a last resort, the court determines division..
Getting professional guidance early often prevents matters from escalating.
Need Help With a Divorce Settlement?
Divorce can leave you feeling overwhelmed, especially when property, finances, and emotions collide.
At Sharon Chandra Barrister, we simplify the process, protect what matters most, and help you reach a fair outcome with confidence.
Get clarity and peace of mind – contact Sharon today to discuss your divorce settlement options.