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Life insurance policies are relationship property even when they are taken out before the relationship began if payments are made during the relationship. However, it is only the proportion of the value attributable to the relationship which becomes relationship property. 

 

This raises a number of issues such as determining when the relationship began which could cause problems where the couple disagree.

 

Also, where premiums have been paid on an insurance policy before and during the relationship, the policy will have to be valued as at the date the relationship began and again as at the date of the end of the relationship so that the value attributable to the relationship can be ascertained. 

 

It is normally the surrender value of the policy which is taken as the value at the end of the relationship but in certain circumstances, the maturity value may be the correct value.

 

The Court has wide powers to make orders in relation to insurance policies. These include vesting the policy in either partner subject to such conditions as the Court thinks just, directing payment of a proportion of the surrender or paid-up value from one partner to the other, or other order as the Court thinks just. 

 

If you are concerned about your assets and want to protect them for your future should your relationship end, please feel free to call me for a free 15 minute call on 021 077 7785 or email me at Hayley@caringestates.co.nz

 

For your free self assessment tool to find out if a Contracting Out Agreement (Prenup) is right for you, please click below.