If you’ve heard the term “prenup” and wondered whether it’s a real thing in New Zealand, the answer is yes — it’s just called something different.
Under the Property (Relationships) Act 1976, couples can enter into what’s known as a **contracting out agreement**, which lets you decide for yourselves how property will be divided if your relationship ends, rather than leaving it up to the default rules in the Act.
What is a contracting out agreement?
When a marriage, civil union, or de facto relationship ends in New Zealand, the Property (Relationships) Act sets out how relationship property is generally divided — usually a 50/50 split for relationships of three years or more. A contracting out agreement allows couples to opt out of these default rules and set their own terms instead.
These agreements aren’t just for people getting married. They can be used by:
- Couples about to marry or enter a civil union
- De facto couples, at any stage of the relationship
- Couples already in a long-term relationship who want to formalise how their assets are treated
- People entering a second relationship who want to protect assets for children from a previous relationship
Why would you want one?
There are plenty of everyday reasons people choose to put an agreement in place, including:
- Protecting assets brought into the relationship — such as a house, savings, or a business you built before meeting your partner
- Ring-fencing an inheritance — so family money or property stays separate
- Clarity for blended families — making sure children from a previous relationship aren’t unintentionally disadvantaged
- Business owners — keeping a business separate from relationship property so a relationship split doesn’t threaten the business itself
- Simply wanting certainty — some couples just prefer to know exactly where they stand, rather than relying on default legislation
What makes an agreement valid?
This is where a lot of homemade agreements come unstuck. To be legally binding, a contracting out agreement must:
- Be in writing
- Be signed by both parties
- Have each party’s signature witnessed by a lawyer
- Have each party receive independent legal advice before signing — meaning each person needs their own lawyer, not one lawyer for both
Skip any of these steps, and you risk the agreement being unenforceable exactly when you need it most.
Can an agreement be overturned?
Yes, in certain circumstances. The Court can set aside a contracting out agreement if giving effect to it would cause “serious injustice.” This isn’t a low bar — it’s a safeguard against agreements that were fair when signed but have become seriously unfair over time (for example, due to a significant change in circumstances), or agreements that weren’t properly explained or understood at the time.
This is exactly why getting the process right at the outset matters. A well-drafted agreement, properly explained and executed, is far more likely to hold up if it’s ever challenged.
When should you get one sorted?
The short answer: earlier than you think. Agreements signed well before a wedding or well before the relationship reaches the three-year mark tend to hold up better than ones signed under time pressure — for example, the week before a wedding. If circumstances change significantly during your relationship (a business is sold, a property is bought, you have children), it’s worth reviewing your agreement to make sure it still reflects your intentions.
Getting advice
Every relationship and every set of assets is different, which is exactly why these agreements need to be tailored rather than pulled off a template. If you’re considering a contracting out agreement — whether you’re about to get married, already in a de facto relationship, or want to protect assets for the future — getting proper legal advice early makes all the difference.
This article provides general information only and is not a substitute for legal advice about your particular circumstances.