Contracting Out Agreements – Relationship Property Lawyer In South Auckland Can Help
The Relationship Property Act applies to civil union and de-facto couples of at least three years, as well as a husband and wife. If there is a separation, the parties will claim the same amount of assets of that relationship. If you do not want this in the relationship, then the partners can enter into an opt-out agreement to protect assets, such as a house, from their previous life. This is sometimes called a Contracting Out Agreement (COA). You need to see a relationship property lawyer in south Auckland if you want to make this happen.
Relationship Property In New Zealand – Contracting Out Agreements
New Zealand law states that both parties are entitled to the same amount of assets. The assets that were acquired during the partnership will be split equally, in the event of a separation.
In previous times, women had to argue in court for assistance and a share of the couple’s asset. Other times, fathers were forced to provide a home and child support, leaving him with little or nothing on which to build his future. This was changed by the Property (Relationships) Act which gave each spouse a half share of the total assets acquired during the life of their relationship.
A key point to note here is that it is assets during the relationship, and not the couple’s total assets.
Why Was The Law Changed?
Going to see a relationship property lawyer in south Auckland will help you understand the implications of this but imagine this scenario.
A good way to think of this is if one of the pair had a house prior to the relationship. They had funded that before they became legally involved with the second person, so they are entitled to the value of that house. However, it is likely that the value of the home will have increased during their time together. With a separation, the two parties agree on the valuation at the start of their relationship, and the value at the end. They then split that difference, after taking away any mortgage costs during that time.
It is possible that a pre-nup will say that the person who brought the home to the relationship remains the sole owner after separation.
See A Relationship Property Lawyer In South Auckland For Advice
This is a complicated area, and one charged with animosity, so talk to a lawyer who will be able to advise you on your rights, obligations, and how to make things happen so that you are not taken advantage of and your rights as a divorced person are met.
When Else Might You Need A Relationship Property Agreement?
The death of one spouse is good reason to have a contracting out agreement in place.
If either or both have children from a previous relationship, it might be considered unfair if the stepchildren are included in the estate of the stepparent. Put simply, should non-related children benefit from the assets of a previous relationship? Many people would say that they are not, and that the natural children of that parent would be disadvantaged in this situation.
A way to avoid this is to have a Contracting Out Agreement (also known as a pre-nup) that states that the assets of a previous relationship do not pass to stepchildren.
Conclusion
It is a great idea to get advice from a relationship property lawyer in south Auckland if you are about to start a relationship.. They have the knowledge to advise you about your assets, how to include your children, and what to consider about any future children.
For people in the south Auckland area, McVeagh Fleming have experienced lawyers who can assist you.