Here is the scenario

You have met your dream partner, the crème de la crème of a wonderful life to date.  You have a successful career, a house, good savings, investments, a dog.  You want to share your life with your dream partner and so you should.  But what happens if things don’t turn out as well as hoped?  What if said dream partner wasn’t “the one”?  What if in four years, ten years, thirty years you realise that someone else is your dream partner?  Don’t you want to share all the things you accomplished in your life with him or her too?  Don’t you want to be able to walk away (amicably or not) with those successes in your life still intact?  Don’t you want to keep your dog?

This is what a CoA can help do for you.  It is in essence your insurance policy in case your wonderful relationship has a tornado rock through it.

Down to basics

Relationships of three years or more (either by marriage, civil union or a de facto relationship) are governed by the Property (Relationships) Act 1976 (“the Act”).  The Act has a large definition for relationship property.  Of key note is that the “family home” (the home which you reside in with your partner during your relationship) is relationship property whenever it was acquired.

What does that mean for you?

If you have been living together in a house bought by you before the relationship your partner is entitled to 50% of that house.

A CoA is pursuant to section 21 of the Act.  Section 21 allows for you to split your assets otherwise than the 50:50 set out by the Act.  You can choose to agree to specific assets kept as separate property regardless of the relationship.  You are “contracting out” of the Act, hence the name.

Applying the scenario

So in applying the scenario above, if you and your dream partner choose to enter into a committed relationship, we recommend you discuss whether a CoA is appropriate for you.

You may want to protect your income (Section 15 Economic Disparity) because there is a significant difference in your incomes and this is in part related to your roles within your relationship.  Your CoA will recognise that disparity and allow for (for example) your partner to receive all the furniture from the house in acknowledgement of that disparity.You may want to keep your house as “your house” (Section 8 Relationship Property Defined).  This would mean an agreement (for instance) that allows for the house to remain yours regardless of the Act.You may want to keep your dog (Section 17 Sustenance of Separate Property).  Your dog is like your child, and you want to protect that relationship.  You could even (as farcical to some as it may sound) provide for the care of your dog.  No custody battles here!You may want to protect your assets (Section 9 Separate Property Defined).  Your life savings, your Kiwisaver, your necklace from Grandma, your shares in Mighty River Power.  Schedules to the CoA list specifically all your assets that you and your partner wish to remain as property separate to yourselves.

You may think it’s not necessary, because your relationship will always be happy, and even if it isn’t you can both be mature about it.  But a CoA is about security and certainty in your relationship.  Remember that car you loved, but just kept breaking down on you?  You probably had insurance for that.  You might never need to use your CoA, and we sincerely hope you never do, but isn’t it better to protect against the storm rather than clean up after it hits?

Fortunately, DKL are experienced at drafting CoA’s for our clients and are happy to assist you with yours.  For more information or an appointment time, Aimee can be contacted at This email address is being protected from spambots. You need JavaScript enabled to view it.

 
Disclaimer: This article discusses its topic in general terms only and should not be relied upon as legal advice.