Is prenuptial agreement useful for couples?
Prenuptial agreements have been permitted and legally enforceable in New Zealand since enactment of the Matrimonial Property Act 1976. Due to changes in law the Matrimonial Property Act 1976 was renamed the Property (Relationships) Act 1976. In New Zealand, the Pre nuptial agreements are also called the agreement to contract out Property (Relationships) Act 1976.
The Property (Relationships) Act 1976 deals with the Relationship property. The Relationship property includes:
- the family home;
- family chattels, such as household furniture and the family car (it does not include heirlooms or taonga) ;
- any property acquired when contemplating the relationship;
- debts;
- insurance on the spouses or partners’ lives or on the family property;
- any part of a superannuation scheme or policy attributable to the marriage or relationship;
- gifts or inheritances which the owning partner allows to become mixed with other relationship property;
- property owned jointly or in equal shares by the spouses or partners;
- generally, property acquired by either spouse or partner during the relationship;
- property such as salary or wages which comes in during the relationship;
- property acquired by one spouse or partner before the marriage in contemplation of the relationship and intended for the common use or benefit of both spouses or partners;
- property which both spouses or partners agree is relationship property;
- increases in the value of relationship property, income from it, or the proceeds from sale of it.
A pre-nuptial agreement also known as pre marriage or pre marital agreement, is an agreement made between spouses before they marry or enter into a civil partnership which establishes how they wish their assets to be divided if they should divorce or have their civil partnership dissolved.
The law provides the two options to the couples:
- to divide the property in accordance with their own arrangements and choices ( by entering into pre nup agreement); or
- by following the Act (property relationship act 1976).
The pre nuptial agreement allows the couples to decide about the ownership of the property without involving the Property Relationship Act 1976. It is the sole discretion of the couples to settle the issues about status and ownership of the property if the marriage breaks down. The law requires that if the parties have entered into agreement before the marriage then the all assets will be distributed in accordance with the provisions of the agreement. The law will only interfere if a serious injustice has been committed with one party.
Section 21 of the pre nuptial agreement allows the parties to contract out of property relationship Act. Marriage can come to end on the basis of any reason. If you have not entered into pre nup agreement then the property will be distributed on the equal basis.
Pre nup agreement provides the amicable solution about the division of the property and minimizes the legal disputes that may arise in case of marriage come to an end. In absence of such agreement, the law will apply. The agreement to contract out Property (Relationships) Act 1976 avoids the presumption of equal sharing of property that arises when the relationship ends.
The main requirements for the validity of the pre nup agreement are that:
- Each party to the agreement must have independent legal advice before signing the agreement.
- The signature of each party to the agreement must be witnessed by a lawyer.
The pre nup agreements are not watertight and court only interfere in pre nup agreements where there is a serious injustice with one party. It is mandatory that both couples must read and understand the effect of each provision of the agreement. Once the agreement is signed; it becomes legally binding.
Net Lawman Provides the following Marriage Documents:
The agreement to contract out Property (Relationships) Act 1976
Prenuptial agreements have been permitted in New Zealand since enactment of the Matrimonial Property Act 1976. Section 21 of the Property (Relationships) Act 1976 expressly authorizes that a husband and wife, civil union partners, de facto partners, or two persons in contemplation of entering into a marriage, civil union or de facto relationship may contract out of the provisions of the Act.
Live together agreement
Suitable for any relationship where the people live together, married or not married. Includes references where you can insert your details regarding property, mortgages, children, financial accounts, utility bills, furniture and electrical items.
marriage documents, prenuptial agreement
Processing your request, Please wait....
