What is the Property (Relationships) Act 1976 in simple terms?

It is the law deciding how a couple's property is divided when a marriage, civil union or de facto relationship ends by separation or death. Its default is equal sharing of relationship property after about three years, and it lets couples agree different rules in a contracting out agreement.

Does the Act only apply if we separate?

No. It also applies when a partner dies: the survivor can choose division under the Act instead of taking under the will. It is a framework that sits over the whole relationship, which is why planning documents need to account for it.

Is property split 50/50 even if one partner paid for everything?

For relationship property, generally yes: the Act treats financial and non-financial contributions as equal, so the family home and property acquired during the relationship are usually shared equally regardless of who paid. Different rules can be agreed in advance by contracting out.

Why is it called the 1976 Act if de facto couples are covered?

It began as the Matrimonial Property Act 1976, covering married couples. Major amendments in 2001 renamed it and extended it to de facto and civil union relationships, which is why the old name and the modern coverage do not match.

The Property (Relationships) Act 1976 explained

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

The Property (Relationships) Act 1976 is New Zealand's law for dividing a couple's property when a relationship ends, by separation or death. Its starting point is simple and strict: once a marriage, civil union or de facto relationship has lasted about three years, relationship property is divided equally between the partners. The Act decides what counts as relationship property, sets the exceptions, and, importantly for planning, lets couples contract out of the default rules by agreement under section 21.

Who does the Act apply to?

Married couples, civil union partners and de facto partners, including same-sex couples, are all covered. For de facto couples the Act generally applies once the relationship has lasted three years, with limited exceptions for shorter relationships involving a child or substantial contributions. No registration or ceremony is involved: the Act attaches to the relationship itself, which is why many couples are covered without ever having decided to be.

What is the equal sharing rule?

The default is a 50/50 division of relationship property, regardless of whose name is on the title or who paid. The family home and family chattels are the headline items: they are generally relationship property even if one partner owned the home before the relationship. Equal sharing reflects the Act's philosophy that a relationship is a partnership of equals in which financial and non-financial contributions, earning and caring, count the same.

Separate property, broadly what each partner brought in and kept separate, inheritances and gifts, stays with its owner, but it can convert into relationship property through use, mixing or contribution, which is where most disputes live. The boundary is covered in what counts as relationship property.

How do couples opt out of the default?

Section 21 lets partners make their own agreement about the status, ownership and division of their property, before or during the relationship: the contracting out agreement, known informally as a prenup. The freedom comes with strict formalities under section 21F, writing, signatures, independent legal advice for each partner and lawyer certification, and with a safety valve: a court may set an agreement aside under section 21J if giving effect to it would cause serious injustice.

What happens on death?

The Act applies on death as well as separation. A surviving partner can generally elect between taking under the deceased's will or applying for division of relationship property under the Act, an election that can override the will's plan for the family home. Couples who care where their property goes on death, especially blended families, address this with an agreement and wills drafted together.

Where is the Act heading?

The Law Commission completed a major review of the Act in 2019 and recommended replacing it with a new statute. Reform has been discussed since, but the 1976 Act remains the law in force. What was proposed and what it would mean for existing agreements is covered in changes to the Property (Relationships) Act.

Common questions

What is the Property (Relationships) Act 1976 in simple terms?: It is the law deciding how a couple's property is divided when a marriage, civil union or de facto relationship ends by separation or death. Its default is equal sharing of relationship property after about three years, and it lets couples agree different rules in a contracting out agreement.
Does the Act only apply if we separate?: No. It also applies when a partner dies: the survivor can choose division under the Act instead of taking under the will. It is a framework that sits over the whole relationship, which is why planning documents need to account for it.
Is property split 50/50 even if one partner paid for everything?: For relationship property, generally yes: the Act treats financial and non-financial contributions as equal, so the family home and property acquired during the relationship are usually shared equally regardless of who paid. Different rules can be agreed in advance by contracting out.
Why is it called the 1976 Act if de facto couples are covered?: It began as the Matrimonial Property Act 1976, covering married couples. Major amendments in 2001 renamed it and extended it to de facto and civil union relationships, which is why the old name and the modern coverage do not match.

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.