Talking about relationship property isn’t romantic. It can feel uncomfortable, awkward, or even unnecessary, especially when a relationship is new or going well.
Yet, for many couples, particularly those entering second relationships, or bringing assets into a partnership, having a contracting out agreement is one of the most practical and caring steps you can take.
A contracting out agreement isn’t about preparing for failure. It’s about fairness, clarity, and protecting the lives you’ve built, both together and apart.
What is a contracting out agreement?
A contracting out agreement, (sometimes referred to as a “prenup”) allow couples to agree in advance how their property will be divided if the relationship ends through separation or death.
Under the Property (Relationships) Act, most relationship property is divided equally once a relationship reaches certain thresholds. A contracting out agreement enables couples to opt out of those default rules and record their own intentions instead.
Why modern relationships need modern planning
Relationships today look very different to those of previous generations. Many couples enter relationships later in life, once careers are established, properties are purchased, or families already exist. Second marriages, blended families, unequal financial contributions and business ownership are now common. Without a contracting out agreement, New Zealand’s property laws can apply in ways that surprise many couples.
Protecting assets without undermining trust
One of the most common misconceptions is that contracting out agreements signal a lack of trust. In reality, they often strengthen relationships by encouraging open conversations about finances and expectations. A well-drafted contracting out agreement can protect prerelationship assets such as business and investments, while also reducing the likelihood of conflict if circumstances change. When both partners understand where they stand, uncertainty and stress are minimised, particularly during times that are already emotionally challenging.
Working alongside your wider estate plan
A contracting out agreement works best as part of a broader estate plan. It should align with your will, any trust structures, Memoranda of Wishes, and Enduring Powers of Attorney. When these documents work together, they provide consistency and clarity, both during your lifetime and after your death.
If you are entering a new relationship, moving in together, purchasing property, or reviewing an existing agreement, now is the right time to seek advice. Addressing these matters early is far simpler and far less costly than resolving disputes later.
If you would like advice tailored to your circumstances, our team is here to help.
Claire Endean – Director/Lawyer
dawsonslawyers.co.nz
claire@dawsonslawyers.co.nz
09 272 0002
