Saturday, January 23, 2021
No Result
View All Result
FMLaw
  • Building and Construction
  • Charitable
  • Commercial
  • Dispute Resolution
  • Employment Law
  • Franchising
    • Franchisee
    • Franchisor
  • Property
  • Relationship Property
  • Retirement
  • Transport
  • Trust, Wills, Estates and Enduring Powers of Attorney
FMLaw
  • Building and Construction
  • Charitable
  • Commercial
  • Dispute Resolution
  • Employment Law
  • Franchising
    • Franchisee
    • Franchisor
  • Property
  • Relationship Property
  • Retirement
  • Transport
  • Trust, Wills, Estates and Enduring Powers of Attorney
No Result
View All Result
FMLaw
No Result
View All Result
Home Relationship Property

Why You Might Need Relationship Property Agreement

by fmlaw news
May 15, 2020
in Relationship Property
0
Why You Might Need Relationship Property Agreement
0
SHARES
25
VIEWS
Share on FacebookShare on Twitter

One who is buying his first property with a partner and participation may not exist on equal basis. They might be on a second relationship and carrying vital assets with them. Or they may be in a long term relationship but both individuals want to set out who possesses what to evade problems down the track.

Relationship Property and Separate Property

The Property (Relationships) Act 1976 (“the Act”) states that Relationship property is directed to equal sharing and separate property is referred to just one of the members.

For instance, people are usually surprised to discover that their Kiwi Saver balances are considered relationship property. This signifies that they are subject to equal distribution, as are their wages or salary. If one party has preserved some of their earnings in a separate bank account, it is likely that money is relationship property too.

Legacies are separate property if they are kept isolated from relationship property. Still, if inheritance is assigned towards a relationship asset (such as the family home) or is merged with other property, then it loses its standing as separate property. Enter into a Contracting out Agreement in order to protect the separate status of the inheritance.

Contracting out Agreement

A Contracting out Agreement values out each partner’s individual separate property. The parties can determine jointly which item is considered separate property. For instance, their individual Kiwi Saver balances, earnings, estates, ornaments, shares, and investments in their individual name, their profits under a family trust, and certain items of furniture, etc. The contract also sets out relationship property. This generally includes the family home and the furniture and chattels in that home.

In order for the contract to be joining, both parties to the agreement must experience independent legal opinion. The lawyers direct each party must follow the value of the assets that are the matter of the contract and execute their commitments under the Act.

Both parties must thoroughly show all assets and debts in order for a Contracting out Agreement to be bind. Neither companion must be under any pressure. You cannot force someone to sign such an agreement. These involve denying to get married or endangering to leave the relationship if they do not sign. The agreement can be set aside and is of no use if compulsion is applied, or it is observed to be invalid due to non-disclosure.

Adding review clause in agreement is a good approach to provide for varying circumstances. For triggering a review, set out a time period or an event, such as completion of job term. If the agreement is not examined at that time or alterations cannot be agreed, then the original agreement will be considered valid.

Contracting out agreement distinguishes separate property and relationship property if both parties in your relationship are keen to have this transparency, our experts would happy to help. Our relationship property lawyer will protect your interests every step of the way, as well as represent you in court if any dispute goes to trial.

Tags: relationship property agreement nzrelationship property law nzseparate property nz
fmlaw news

fmlaw news

Related Posts

Division of Property In The Case Of Separation

Division of Property In The Case Of Separation

by fmlaw news
July 13, 2020
0

With the evolving time, the separation between partners is on the rise in New Zealand due to social, economic and...

Relationship Property and The Changes Ahead

Relationship Property and The Changes Ahead

by fmlaw news
June 5, 2020
0

The Property Act 1976 presents rules on the distribution of property when a relationship ends on divorce or separation. The...

Muted Government response on relationship property law reform

Muted Government response on relationship property law reform

by fmlaw news
March 12, 2020
0

The Government has released its response(1) to the Law Commission report, Review of the Property (Relationships) Act 1976 Te Arotake...

Next Post
How could Covid-19 alert Level 3 Impacts Employers?

How could Covid-19 alert Level 3 Impacts Employers?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

COVID-19 and Employment

COVID-19 and Employment

9 months ago
The Timeshare Property Transfer Model

Important Things to Remember before Buying Home

2 months ago
FMLaw

© 2020 FMLaws News keeps you fully updated of the latest law in New Zealand.

Navigate Site

  • Building and Construction
  • Charitable
  • Commercial
  • Dispute Resolution
  • Employment Law
  • Franchising
  • Property
  • Relationship Property
  • Retirement
  • Transport
  • Trust, Wills, Estates and Enduring Powers of Attorney

Follow Us

No Result
View All Result
  • Building and Construction
  • Charitable
  • Commercial
  • Dispute Resolution
  • Employment Law
  • Franchising
    • Franchisee
    • Franchisor
  • Property
  • Relationship Property
  • Retirement
  • Transport
  • Trust, Wills, Estates and Enduring Powers of Attorney

© 2020 FMLaws News keeps you fully updated of the latest law in New Zealand.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In