What is a contracting out agreement in NZ?

An agreement under section 21 of the Property (Relationships) Act 1976 in which a couple chooses its own property rules instead of the Act's default equal sharing. It is what most people mean by a prenup, and it is available to married, civil union and de facto couples.

Do we need a contracting out agreement after 3 years together?

Three years is when the Act's equal sharing rules generally start applying to de facto couples, so an agreement signed before that point preserves your choice. You can still sign one after three years; it simply needs to deal with property interests that may already have arisen.

Can one lawyer act for both of us?

No. Independent advice from separate lawyers for each partner is a validity requirement under section 21F. An agreement where one lawyer advised both partners is void.

Does a contracting out agreement expire?

No, it lasts until it is replaced or set aside. But an agreement that was fair when signed can age badly as circumstances change, which increases the risk a court would find serious injustice. Reviewing it at major life events is good practice.

Contracting out agreements in New Zealand

Updated 2026-08-09. General information, not legal advice.

A contracting out agreement is a written agreement, made under section 21 of the Property (Relationships) Act 1976, in which a New Zealand couple sets its own rules for owning and dividing property instead of the Act's default rules. The default is blunt: once a marriage, civil union or de facto relationship reaches about three years, relationship property, usually including the family home, is divided equally if the relationship ends. Contracting out means the two of you decide instead, in advance, while you agree.

Most people know it as a prenup. Same thing: the names are interchangeable in NZ, and the agreement is available before or during a relationship.

What can a contracting out agreement cover?

Almost anything about property. An agreement can classify what each partner brings in as separate property, set how the family home and its value are treated, deal with KiwiSaver, income and savings, protect a business or farm, handle debts, anticipate inheritances, and set what happens both on separation and on death. It cannot decide day-to-day care of children or child support; those are governed by other law.

The agreement takes its shape from your situation. A couple with one partner owning the house needs different clauses from a couple with a family trust or a company. Start from what to include in a prenup.

Who uses one, and when?

Couples about to marry are the classic case, but in New Zealand the bigger group is de facto couples, because the Act treats roughly three years of living together like a marriage for property purposes. Moving in together, buying a first home with unequal deposits, re-partnering later in life with children from a previous relationship, or holding assets in a trust or business are the common triggers.

Timing is flexible. You can sign in contemplation of a relationship, early in one, or years into a marriage. Earlier is simpler and safer: property has not yet mixed, and nobody can later argue the agreement was signed under wedding-week pressure.

What makes it valid?

Section 21F of the Act makes an agreement void unless four requirements are met: it is in writing and signed by both partners; each partner had independent legal advice from their own lawyer before signing; each signature was witnessed by that lawyer; and the lawyer certified that they explained the agreement's effect and implications before signing. Two partners cannot share a lawyer. Read section 21F explained for what the advice session covers.

A valid agreement can still be set aside under section 21J if giving effect to it would cause serious injustice, so fairness and full disclosure at signing are part of making it stick, not optional extras.

What does the process look like?

In practice: you and your partner list what you each own and owe, agree the big rules together, have the agreement drafted, then each take it to your own lawyer for independent advice, any adjustments, witnessing and certification. Allow a few weeks end to end, longer if trusts or businesses are involved. The two-lawyer step is where the cost sits, and it is also what makes the agreement enforceable. The get started page walks through the steps in order.

Common questions

What is a contracting out agreement in NZ?: An agreement under section 21 of the Property (Relationships) Act 1976 in which a couple chooses its own property rules instead of the Act's default equal sharing. It is what most people mean by a prenup, and it is available to married, civil union and de facto couples.
Do we need a contracting out agreement after 3 years together?: Three years is when the Act's equal sharing rules generally start applying to de facto couples, so an agreement signed before that point preserves your choice. You can still sign one after three years; it simply needs to deal with property interests that may already have arisen.
Can one lawyer act for both of us?: No. Independent advice from separate lawyers for each partner is a validity requirement under section 21F. An agreement where one lawyer advised both partners is void.
Does a contracting out agreement expire?: No, it lasts until it is replaced or set aside. But an agreement that was fair when signed can age badly as circumstances change, which increases the risk a court would find serious injustice. Reviewing it at major life events is good practice.

Thinking about a prenup?

The right order matters. Agree the big things together first, then each of you gets your own lawyer to advise on and certify the agreement. That second step is what makes it binding.

See how to get started

Sources

All information published on prenup.nz, including this guide, is general information only and is not to be construed as legal advice. We strongly recommend seeking independent legal advice about your own situation. A contracting out agreement only binds you once each partner has taken independent legal advice and a lawyer has witnessed and certified each signature, as section 21F of the Property (Relationships) Act 1976 requires.