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Did you know that according to New Zealand law, you could be in a de facto relationship even if you don’t live in the same house?  There are many Kiwis at risk of being in a de facto relationship without even knowing it.  This means their assets are at risk and they have no idea.  Kiwis are shocked when they realise that their girlfriend/boyfriend could be entitled to 50% of their assets.

So how does the law define what a de facto relationship is? The Property (Relationships) Act describes a de facto relationship as a relationship between two persons who are 18 years or older (regardless of their sex, sexual orientation, or gender identity) who live together as a couple, and who are not married or in a civil union with one another.

Where things can get tricky is what it means to ‘live together as a couple’. In evaluating what constitutes living together as a couple, several things are considered, and determining whether one is in a de facto relationship becomes a matter of evidence. A court will consider the following-

• the duration of the relationship
• the nature and extent of common residence
• whether a sexual relationship exists
• the degree of financial dependence or independence
• the ownership, use and acquisition of property
• the degree of commitment to a shared life
• the care and support of children
• the performance of household duties
• whether other people view the couple as being in a relationship

None of the above factors is compulsory, and a court may decide a couple is in a de facto relationship even if a couple does not meet all the requirements above.

When a couple has been in a de facto relationship for three years or more, and the relationship ends, the assets are divided between the parties equally. Relationship property consists not only of a family home but can also extend to other assets such as household chattels (movable personal property), vehicles, income, and Kiwisaver.

A relationship of a shorter duration could also be subject to a relationship property claim if a court is satisfied that there is a child and that the applicant has made a substantial contribution to the de facto relationship. The property is then divided based on the contribution each party has provided.

If you are concerned that your dating relationship may indeed be a de facto relationship and you want to protect your assets for the future should your relationship end, please feel free to call me for a free 15 minute call on 021 077 7785 or email Hayley Boud at Hayley@caringestates.co.nz

Donna McLean – Law Clerk