The 3-Year Rule for Relationship Property in New Zealand

Under the Property (Relationships) Act 1976, a marriage, civil union, or de facto relationship that has lasted three years or more is generally covered by a general rule of equal, 50/50, sharing of relationship property. This page explains that 3-year rule, what falls inside and outside it, and how it differs from separate property.

This is general information about New Zealand law, not legal advice. For your own situation, consult a lawyer or your local Community Law centre.

What the Property (Relationships) Act covers

The Property (Relationships) Act 1976 sets out how property is classified and divided between partners when a marriage, civil union, or de facto relationship ends, whether through separation or death. Its general starting point is that partners have contributed equally to the relationship, so relationship property is usually shared equally between them.

Which relationships are covered

The Act applies to three types of relationship: marriage, civil union, and de facto relationships. A de facto relationship is generally two people, of any sex, who are not married or in a civil union with each other, who live together as a couple. Whether a de facto relationship exists is assessed on factors such as the duration of the relationship, whether the couple lived together, the degree of financial interdependence, and how the couple presented themselves to others, rather than on a single test.

The 3-year threshold

The Act's equal-sharing rules generally apply once a marriage, civil union, or de facto relationship has lasted three years or more. Time spent living together as a de facto couple before a later marriage or civil union generally counts towards that three years.

Relationships under three years

A de facto relationship that has lasted less than three years is generally excluded from the Act under section 14A, meaning the equal-sharing regime does not automatically apply. The main exceptions are where there is a child of the relationship, or where one partner has made a substantial contribution to the relationship and excluding it from the Act would cause that partner serious injustice.

A marriage or civil union under three years is treated differently again. Rather than being excluded outright, division is generally based more on what each partner brought into the relationship and each partner's individual contributions, rather than an automatic equal split.

Relationship property versus separate property

Relationship property generally includes the family home and family chattels regardless of when they were acquired or whose name they are in, income earned during the relationship, and most property acquired during the relationship. Separate property generally includes property a partner owned before the relationship began, other than the family home, along with inheritances, and gifts from a third party, that have been kept separate from the relationship rather than mixed into joint use.

Classifying a specific asset, for example a business, a family trust, or property that has changed in value during the relationship, often turns on detailed facts and is one of the more contested areas in practice.

Equal sharing is a general rule, not an absolute one

Even where a relationship has lasted three years or more, equal sharing is a general rule rather than a fixed outcome in every case. A court can depart from an equal division in limited circumstances, for example where equal sharing would be extremely unfair given the particular contributions and circumstances of the relationship.

Partners can set their own rules by agreement

Instead of relying on the Act's default position, partners can enter into a contracting out agreement under section 21 of the Act, sometimes described as a prenuptial or relationship property agreement, to set their own rules for how property is classified and divided. See contracting out agreements for the requirements that make one of these agreements valid, and when a court can still set one aside.

Related New Zealand family law topics

Child support is worked out separately from relationship property, using its own formula administered by Inland Revenue. See child support in New Zealand for how that formula works, or the family law hub for the wider picture.

Frequently Asked Questions

What is the 3-year rule for relationship property in New Zealand?

Under the Property (Relationships) Act 1976, once a marriage, civil union, or de facto relationship has lasted three years or more, relationship property is generally divided equally, 50/50, between the partners if the relationship ends.

Does the 3-year rule apply to de facto couples the same way as marriages?

The same general 50/50 principle applies once a relationship of any of the three covered types reaches three years. For de facto relationships specifically, section 14A generally excludes relationships under three years from the Act, subject to the exceptions for a child of the relationship or serious injustice.

What happens if a relationship ends before three years?

A marriage or civil union under three years is generally divided based more on what each partner contributed, rather than an automatic 50/50 split. A de facto relationship under three years is generally excluded from the Act altogether unless there is a child of the relationship or excluding it would cause one partner serious injustice.

What is the difference between relationship property and separate property?

Relationship property generally includes property acquired during the relationship, such as the family home and income earned during the relationship. Separate property generally includes property a partner owned before the relationship began, other than the family home, along with inheritances and gifts kept separate from the relationship.

Can equal sharing be changed by agreement?

Yes. Partners can enter into a contracting out agreement under section 21 of the Act to set their own rules for how property is classified and divided, instead of relying on the Act's default equal-sharing approach.