What is a prenup
Updated 2026-08-09. General information, not legal advice.
A prenup (short for prenuptial agreement) is a legal agreement a couple signs to decide how their property would be divided if the relationship ever ended. In New Zealand the correct legal name is a contracting out agreement, made under section 21 of the Property (Relationships) Act 1976, because the couple is contracting out of the Act's default rules. Without one, the Act generally divides relationship property, including the family home, 50/50 once a marriage, civil union or de facto relationship reaches about three years.
A prenup is not just for the wealthy and not just for marriages. Couples moving in together, buying a home with unequal deposits, entering a second relationship with children, or bringing a business or family money into a relationship are the people who use them most.
What does a prenup actually do?
A contracting out agreement records what each partner owns, then sets your own rules for that property: what stays each person's separate property, what becomes shared, and how anything acquired together would be divided. It replaces the Act's one-size-fits-all default with rules you both chose while things are good.
Typical things a couple ringfences include a house or deposit owned before the relationship, savings and KiwiSaver built up before you got together, a business, an expected inheritance, and property connected to a family trust. See what to include in a prenup for the full checklist.
When do you need one?
The honest trigger is any moment your financial positions are unequal and you are committing: getting engaged, moving in together, or approaching three years of living together. Three years matters because that is when the Act's equal sharing rules generally start applying to de facto couples, whether or not they ever intended it.
Signing early is easier. The conversation is simpler before property has mixed together, and an agreement signed well ahead of a wedding or a move avoids any suggestion that one partner was pressured. If you are already married or partnered, you can still sign one at any time.
What makes a prenup legally binding in NZ?
Section 21F of the Act sets four requirements, and missing any of them makes the agreement void. It must be in writing and signed by both partners. Each partner must get independent legal advice from their own lawyer before signing. Each signature must be witnessed by that lawyer. And the lawyer must certify that they explained the effect and implications of the agreement before it was signed. Read why each partner needs their own lawyer for how this works in practice.
Even a properly signed agreement can be set aside by a court if enforcing it would cause serious injustice, which is why fair terms and full disclosure at signing matter as much as the paperwork.
Is a prenup unromantic?
It is a planning conversation, not a vote of no confidence. The Act will impose rules on your property either way; the only question is whether you choose them together or accept the default. Most couples who sign one describe the process as clarifying: you each know what you brought, what you are building together, and that neither of you is relying on assumptions. It is the same instinct as insurance or a will, done while you are happy and thinking clearly.
Common questions
- What does prenup mean?
- Prenup is short for prenuptial agreement, an agreement made before marriage about how property would be divided if the relationship ended. In New Zealand the legal term is a contracting out agreement, and it is available to married, civil union and de facto couples, before or during the relationship.
- Is a prenup valid in New Zealand?
- Yes. Contracting out agreements are expressly provided for by section 21 of the Property (Relationships) Act 1976. They are valid when written, signed, and certified after each partner receives independent legal advice from a separate lawyer.
- What happens if we never sign one?
- The Act's default rules apply. After about three years of marriage, civil union or de facto relationship, relationship property, which usually includes the family home and property acquired during the relationship, is generally divided equally if you separate or a partner dies.
- Can a prenup cover property we buy in the future?
- Yes. An agreement can set rules for existing property and for property either of you acquires later, such as classifying future income, inheritances or a future home. Clear rules for future property are one of the main reasons to have an agreement drafted well.
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.