Contracting Out Agreements

The Property (Relationships) 1976 (“Act”) sets out the rules for the division and distribution of a couple’s property (whether they are a de facto couple, in a civil union, or married) on their separation or on the death of either of them [1].

Generally, where a couple have been in a qualifying relationship for three years or more, all relationship property will be divided equally.

A couple can make their own arrangements as to how they want their property dealt with at the end of their relationship by entering into a contracting out agreement under the Act, commonly referred to as a pre-nup.

Contracting out agreements can cover as much or as little as a couple would like, but there are strict rules that need to be followed.

Here are some key points to know about contracting out agreements in New Zealand:

1. What can contracting out agreements cover?

Contracting out agreements are typically used to specify how assets and liabilities will be divided at the end of a relationship. They can also provide for the rules of ownership during the relationship (for example, who will pay what) and rules for the division of property (for example, how property will be valued and sold).

2. Why do you need an agreement?

Contracting out agreements are common where one person enters a relationship with significantly more property than the other and wants to keep specific assets separate or in second-time around relationships. However, there are many different reasons why people may consider a contracting out agreement.

3. When do you enter an agreement?

A contracting out agreement can be entered into at any time during a relationship. However, it’s usually best to enter into a contracting out agreement at the beginning of a de facto relationship, marriage, or civil union (or immediately before it begins).The rules should be clear from the start; therefore, there is no pressure on one party to sign an agreement before any important dates, like a wedding, or, in the case of de facto couples, reaching the three-year mark in their relationship.

4. How does a contracting out agreement work?

To be binding, a contracting out agreement must be in writing and signed by both parties. Each party must also have independent legal advice (that is, from their own lawyer) before signing the agreement. The lawyers must each witness their client’s signature and certify that they have explained the implications and consequences of signing the agreement before the client signed it.

[1] In a recent decision, the Supreme Court determined that the Act can, in certain circumstances, also apply to polyamorous relationships.

Informal agreements that a couple might make between themselves (whether they’re in writing or not) are of no legal effect (although, you can, in limited circumstances, apply for them to be upheld).

5. Do you have to make a contracting out agreement fair?

The court can set contracting out agreements aside if the terms would amount to a “serious injustice” should the agreement to remain in place (which may include the agreement being unfair or if one party was under duress to sign).

6. What about trusts?

Special consideration must be given to trusts and trust owned property because the interplay between trusts and relationship property under the Act can be complex.

7. Once a contracting out agreement is signed, should you forget about it?

No, it is important that contracting out agreements are reviewed regularly to ensure the terms do not become seriously unjust because that can leave the agreements vulnerable to being set aside by the court.

How often an agreement should be reviewed will depend on the particular circumstances (including changes to property, getting married, the birth of a child, or simply the passage of time).

8. How do you raise the topic of a contracting out agreement with your partner?

For some, this is an awkward topic. However, it’s always best an agreement is discussed early on in a relationship. We can give advice and guidance as to how best to broach the topic and the issues with your partner.

9. What will creating and finalising a contracting out agreement cost?

This varies greatly. So, the cost depends on the complexity of the contracting out agreement, the extent of a couple’s property, and the time it takes to draft, negotiate, and advise on the terms.

While some people are reluctant to spend money on a contracting out agreement at all, a contracting out agreement can save people considerable amounts of money and legal fees in the long run.

A contracting out agreement can provide certainty and peace of mind for both parties for the future.

If you have questions concerning contracting out agreements (or reviews of them), our experienced Family Lawyers can offer valuable insights and recommendations on tailoring an agreement that precisely fits your relationship. For more information, please contact Vonja Young, Michaela Barnes, or Seb Recordon.

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Housing Intensification and Resilience

26 November 2025

Proposed Plan Change 120: What You Need to Know What is PC120 and why does it matter? Auckland Council has proposed a change to the Auckland Unitary Plan called Plan Change 120 (PC120) . This change is about two main things: Rezoning areas of residential land to allow more housing intensification in and around urban centres and transport hubs. Making communities safer from natural hazards like flooding and landslides. Why is this happening? By way of background, PC78 (Auckland’s former intensification plan change, as required by the National Policy Statement on Urban Development 2020) incorporated the Medium Density Residential Standards that were required at the time. Generally, this allowed three dwellings of up to three storeys to be built on most residential sites without the need for resource consent. In August 2025, the Government amended the Resource Management Act 1991 to allow for greater intensification in town centres and around existing and planned transit routes. As a result, PC78 was withdrawn in part by Auckland Council and PC120 was notified. What will PC120 do? Increase housing density within and around town centres and transport hubs. Allow taller buildings: At least 6 storeys within walkable catchments of the city/town centre zone and around existing and planned train and bus routes. At least 10–15 storeys around certain train stations listed in the Resource Management Act 1991. These heights and densities must be enabled unless a ‘qualifying matter’ applies to a site which makes that level of development inappropriate. Natural hazard rules PC120 also introduces stricter rules to manage natural hazards such as flooding, landslides, and coastal erosion. This is a response to recent severe weather events like the 2023 Auckland floods caused by Cyclone Gabrielle. The updated rules and hazard mapping re-classify hazard areas and their risk level and require mitigation measures to be implemented that avoid creating or worsening natural hazard risks. What does this mean for property owners and developers? Expect more multi-storey and apartment-style housing near town centres and transport hubs, and an increase in shared spaces and communal assets. Intensification may lead to issues concerning: Boundary and airspace rights. View and sunlight obstruction. An increase in easements and restrictive covenants in already built-up areas. New subdivision and land uses may only be allowed where the natural hazard risk is considered tolerable or acceptable. Coastal development will become more difficult. The impact of a proposed development on existing floodplains and overland flow paths will be scrutinized. Maintenance or upgrade works may be required to ensure stormwater runoff and flood waters are adequately conveyed. Why should you care? These changes could affect your property rights, development plans, and legal obligations. If you’re buying, selling, or developing land, it’s important to understand how PC120 impacts you. Please get in touch with our property team if you’d like to discuss how these proposed changes could affect your property or future plans. https://www.glaisterkeegan.co.nz/our-expertise/property#CommercialProperty

Disclosure and Due Diligence

26 November 2025

Sole v Hutton – disclosure obligations for apartment sales and the importance of thorough due diligence when purchasing In Sole v Hutton [2025] NZHC 430, the High Court dealt with a dispute over undisclosed weathertightness issues in an apartment complex and delivered a strong reminder about vendors’ disclosure obligations. In 2019, the Purchasers (the Soles) purchased an apartment in Mount Maunganui for $1,495,000. Less than a year after settlement, they discovered major weathertightness issues affecting the entire building. The Body Corporate embarked on an extensive remediation project, and the Purchasers were hit with more than $1,300,000 in special levies for their share of the work. The Court found that the Vendors (the Huttons) had attended Body Corporate meetings in 2014 where multiple expert reports highlighted significant leaks and recommended re-roofing and re-cladding of the building. Despite this, the Vendors told their agent that there were no known weathertightness issues and this information was passed onto the Soles. The Court held that:- · The Vendors breached the warranty in clause 11.2(7) of the Agreement for Sale and Purchase of Real Estate, which requires disclosure of any facts that may give rise to liabilities under the Unit Titles Act 2010; · The failure to disclose the reports and the assurance that there were “no issues” amounted to misrepresentation. The Soles were awarded $926,806.48 plus interest in damages, including their share of remedial costs (after a 30% betterment reduction, as the remedial works increased the value of the property), alternative accommodation and general damages for stress and inconvenience. Key takeaways:- · Vendors : Always disclose all known issues including historic reports and AGM minutes, even if you believe the matter has been dealt with or is no longer significant. · Purchasers : Buying a unit title property comes with shared risk. Ensure you complete thorough due diligence including reviewing all Body Corporate records, reports and minutes to understand potential liabilities and future levies. · Risk management : Non-disclosure can lead to expensive litigation, while thorough due diligence can prevent nasty surprises. Thinking of buying a unit title property? Our property team can guide you through a thorough due diligence process so you have a clear picture of any potential liabilities before you buy. This can save you from unexpected costs and disputes down the track. Selling a unit title property? Full and accurate disclosure is not just a legal requirement, it’s the best protection against expensive claims after settlement. If you’re unsure what must be disclosed or how the warranties in the Agreement for Sale and Purchase apply to your situation, get in touch with our property team. We can help you prepare clear, compliant disclosure statements and minimise the risk of future disputes. https://www.glaisterkeegan.co.nz/our-expertise/property#ResidentialConveyancing

Granny Flats Exempt from Building Consent from Early 2026

26 November 2025

In a significant move to ease housing pressures, the New Zealand Government has passed legislation allowing homeowners to build granny flats—up to 70 square metres—without needing building consent. This change, part of the Building and Construction (Small Standalone Dwellings) Bill, is expected to take effect in early 2026, following the removal of resource consent requirements by the end of 2025. The exemption applies to standalone dwellings that are simple in design, comply with the Building Code, and are constructed by authorised building professionals. While formal building consent is no longer required, homeowners must still notify their local council before starting and after completing the build. This reform aims to increase housing supply, reduce costs, and boost productivity in the construction sector. It offers practical benefits for multigenerational families, rural communities, and those seeking affordable housing options. For clients considering adding a granny flat to their property, now is the time to begin planning. Engaging qualified designers and builders early will ensure compliance with the exemption criteria and avoid delays once the regulations come into force. https://www.glaisterkeegan.co.nz/our-expertise/property#ResidentialConveyancing