The new Property (Relationships) Amendment Act 2001 ("the Act") will dramatically change the financial implications of entering into and ending a de facto relationship. De facto is defined to include relationships between a man and a woman, a woman and a woman, or a man and
a man. Whether or not a de facto relationship exists will depend on a large number of factors including sex and domestic arrangements. It is possible that non sexual flatmate type arrangements could de deemed to be de facto relationships, and that a person could be in two relationships at the same time even if one of these is secret.

In very broad terms, the Act starts with the assumption that there will be a 50/50 split in the home and certain other property (regardless of whose name these are in) if the relationship breaks down, or one of the partners dies, on or after 1 February 2002. Usually the partners will have to have been together for 3 years. It will usually be irrelevant whether or not one
partner has contributed a greater amount financially. If either of the partners has a child(and in certain other circumstances) the 50/50 split may apply sooner than 3 years.

In situations where one partner has put his or her career on hold to care for the home, or for children, he or she may be entitled to more than 50%.

It will be possible for de facto couples to make an agreement to contract out of the Act. Strict provisions will apply to agreements entered into, on, or after 1 August 2001.

Agreements can help provide certainty for the future and to protect assets, however, they may be able to be overturned in cases of "serious injustice".

This is a general summary only and should not be taken as a substitute for specific advice.

Kristina Andersen is an Auckland lawyer with a special interest in family law and
relationship issues.

Email: find@aucklandlawyer.co.nz
Web site: Kristina Andersen

May 2001