South Auckland Relationship Property Lawyer For Pre-Nup Agreements
In New Zealand, the Relationship Property Act applies to spouses, civil union, and de-facto for at least three years. That means that if there is a separation, then both parties have equal claims on the total assets of the pair. If you do not want this, for example, one partner might bring a house or a legacy to the relationship which they regard as their own personal asset, then the partners can enter into an opting-out agreement. This is often called a pre-nup. If this is your wish, then you need to see a south Auckland relationship property lawyer.
What Is A Pre-Nup?
A pre-nup, (before marriage) is an agreement more formally known as a Contracting Out Agreement (COA). This means that both parties to the relationship agree that they will split their assets in accordance with the terms of the COA. A pre-nup needs to be drafted and executed by an experienced south Auckland relationship property lawyer.
This is important because under New Zealand law, both parties are entitled to an equal share of the matrimonial assets. In the event of a separation, the assets acquired during the length of the partnership will be divided equally. In years gone by, usually the woman, had to argue for a share of the assets. Often the assets were not allocated equally either. It was common for the woman to be left with little, or for the father to have a small asset base after providing a home for the ex-wife and children. Neither of these situations was fair. The Property (Relationships) Act of 1976 addressed that by giving both parties equal shares of the assets from the union.
It’s important to note that it refers to the assets during that union. This means that if one party had a house for example, prior to the union, and that was the marital home. When they separate, the other party is not entitled to a 50% share of the house market value at the time of separation. Instead, the PRA allows the house owner to deduct the value of the home at the start of the relationship from the current market value to deduce the gain during that time. Both parties are then due 50% of that gain, not the total market value.
A pre-nup might say that the person bringing the home to the relationship remains the sole owner of that, even upon separation.
Advice From A South Auckland Relationship Property Lawyer
If such a scenario was proposed, i.e., the person bringing the house to the relationship retains sole ownership, the other party might not think this is a good idea. It probably isn’t. In that case, they need to seek advice on pre-nups, from a different lawyer that works with relationship property agreements.
Other Situations For Using A Relationship Property Agreement
A pre-nup can refer to asset allocation not just upon separation, but also upon the death of one of the partners. For example, it is a common situation is if one or more of the partners has children from a prior union.
In the new relationship, it might be appropriate that the prior assets are left to the natural children rather than shared between all children including those of the new union.
Summary
If you are entering into a relationship, it is a good idea to get advice from a south Auckland relationship property lawyer. They can advise you about your current assets, how to include your children, and things to consider about any future children.
McVeagh Fleming in Manukau city can help.
No Responses