Property (Relationships) Act 1976: Difference between revisions
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The Property (Relationships) Act (the Act) is a New Zealand statute that primarily deals with the division of property of married couples, de-facto couples and [[civil union]] couples when they separate or when one of them dies. In general, the couple's property is to be divided equally between them. |
The Property (Relationships) Act (the Act) is a New Zealand statute that primarily deals with the division of property of married couples, de-facto couples and [[civil union]] couples when they separate or when one of them dies. In general, the couple's property is to be divided equally between them.<ref>{{cite Property (Relationships Act 1976, s 1C}}</ref> |
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==Division of property== |
==Division of property== |
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===Relationship property and separate property=== |
===Relationship property and separate property=== |
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Section 8 and 9 of the Act specify what is relationship property and what is separate property for the purposes of the Act. Sometimes separate property can become relationship property and thus subject to equal sharing.<ref> |
Section 8 and 9 of the Act specify what is relationship property and what is separate property for the purposes of the Act. Sometimes separate property can become relationship property and thus subject to equal sharing.<ref>{{citeFor more detail see the Property (Relationships Act 1976, sections 8&9}}</ref> |
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===Exceptions to equal sharing=== |
===Exceptions to equal sharing=== |
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"The phrase ‘extraordinary circumstances’ refers, I think, to circumstances that must not only be remarkable in degree but also be unusual in kind. It is vigorous and powerful language to find in any statute and I am satisfied that it has been chosen quite deliberately to limit the exception to those abnormal situations that will demonstrably seem truly exceptional and which by their nature are bound to be rare." '''''Martin v Martin'' [1979] 1 NZLR 97 (CA), 102, per Woodhouse J.''' </blockquote> |
"The phrase ‘extraordinary circumstances’ refers, I think, to circumstances that must not only be remarkable in degree but also be unusual in kind. It is vigorous and powerful language to find in any statute and I am satisfied that it has been chosen quite deliberately to limit the exception to those abnormal situations that will demonstrably seem truly exceptional and which by their nature are bound to be rare." '''''Martin v Martin'' [1979] 1 NZLR 97 (CA), 102, per Woodhouse J.''' </blockquote> |
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If section 13 is satisfied the shares of the parties are determined in accordance with the contribution of each to the marriage partnership.<ref> |
If section 13 is satisfied the shares of the parties are determined in accordance with the contribution of each to the marriage partnership.<ref>{{citeSee Property (Relationships Act 1976, s 18}}</ref> |
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===Compensating for economic disparities=== |
===Compensating for economic disparities=== |
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Under s 15 of the Act, if at the end of the relationship the income and living standards of partner A are likely to be significantly higher than partner B as a consequence of the effects of the division of functions within the relationship, then the Court has power to make compensating orders.<ref> |
Under s 15 of the Act, if at the end of the relationship the income and living standards of partner A are likely to be significantly higher than partner B as a consequence of the effects of the division of functions within the relationship, then the Court has power to make compensating orders.<ref>{{citeSee Property (Relationships Act 1976, s 15}}</ref> This provision has been referred to as the "stay-at-home spouse clause" and allows one partner to be awarded more than 50 percent of joint property to address the economic disparity created during the relationship.<ref>{{citeSpratt, A "Parting Shots" ''The New Zealand Listener,'' July 7 2007, p 15.}}</ref> |
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==Contracting out agreements== |
==Contracting out agreements== |
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If people have assets they wish to protect they can enter into a contracting-out agreement with their partner at the beginning of the relationship. The provisions in part 6 of the Act deal with contracting out of the Act so that the 50/50 split can be avoided. For agreement to be watertight, they must be drafted in such a way as to allow for the creation of future property."<ref> |
If people have assets they wish to protect they can enter into a contracting-out agreement with their partner at the beginning of the relationship. The provisions in part 6 of the Act deal with contracting out of the Act so that the 50/50 split can be avoided. For agreement to be watertight, they must be drafted in such a way as to allow for the creation of future property."<ref>{{citeSpratt, A "Parting Shots" ''The New Zealand Listener,'' July 7 2007, p 18.}} </ref> |
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Revision as of 02:35, 3 July 2007
The Property (Relationships) Act (the Act) is a New Zealand statute that primarily deals with the division of property of married couples, de-facto couples and civil union couples when they separate or when one of them dies. In general, the couple's property is to be divided equally between them.[1]
Division of property
Equal sharing
According to s 11 of the Act, on the division of joint property under the Act, each of the spouses or partners is entitled to share equally in the family home, the family chattels, and any other relationship property.
Relationship property and separate property
Section 8 and 9 of the Act specify what is relationship property and what is separate property for the purposes of the Act. Sometimes separate property can become relationship property and thus subject to equal sharing.[2]
Exceptions to equal sharing
There are some statutory exceptions to the equal sharing presumption. For example, if the relationship is one of short duration as defined by the Act, the Court may divide the property other than equally.
Section 13
Section 13 of the Act gives the Court discretion to depart from equal sharing if there are "extraordinary circumstances" which render equal sharing "repugnant to justice". The Court of Appeal has emphasised that this test is a stringent one:
"The phrase ‘extraordinary circumstances’ refers, I think, to circumstances that must not only be remarkable in degree but also be unusual in kind. It is vigorous and powerful language to find in any statute and I am satisfied that it has been chosen quite deliberately to limit the exception to those abnormal situations that will demonstrably seem truly exceptional and which by their nature are bound to be rare." Martin v Martin [1979] 1 NZLR 97 (CA), 102, per Woodhouse J.
If section 13 is satisfied the shares of the parties are determined in accordance with the contribution of each to the marriage partnership.[3]
Compensating for economic disparities
Under s 15 of the Act, if at the end of the relationship the income and living standards of partner A are likely to be significantly higher than partner B as a consequence of the effects of the division of functions within the relationship, then the Court has power to make compensating orders.[4] This provision has been referred to as the "stay-at-home spouse clause" and allows one partner to be awarded more than 50 percent of joint property to address the economic disparity created during the relationship.[5]
Contracting out agreements
If people have assets they wish to protect they can enter into a contracting-out agreement with their partner at the beginning of the relationship. The provisions in part 6 of the Act deal with contracting out of the Act so that the 50/50 split can be avoided. For agreement to be watertight, they must be drafted in such a way as to allow for the creation of future property."[6]
External link
"Ministry of Justice A guide to the law - matrimonial & de facto property law"
- ^ Template:Cite Property (Relationships Act 1976, s 1C
- ^ Template:CiteFor more detail see the Property (Relationships Act 1976, sections 8&9
- ^ Template:CiteSee Property (Relationships Act 1976, s 18
- ^ Template:CiteSee Property (Relationships Act 1976, s 15
- ^ Template:CiteSpratt, A "Parting Shots" ''The New Zealand Listener,'' July 7 2007, p 15.
- ^ Template:CiteSpratt, A "Parting Shots" ''The New Zealand Listener,'' July 7 2007, p 18.