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In New Zealand, what many people call a “prenup” is more commonly known as
a contracting out agreement.
Under the Property (Relationships) Act 1976, married couples, civil union
partners, and de facto couples can choose to “contract out” of the default rules
that would otherwise divide relationship property equally if the relationship
ends.
While often associated with wealthy individuals, these agreements are
increasingly relevant for everyday New Zealanders navigating modern
relationships.
A contracting out agreement is especially useful in second marriages or
relationships where one or both partners have children from a previous
relationship.
In these situations, people often want to protect certain assets —
such as a family home, savings, or an inheritance — for their children. Without
an agreement in place, those assets could be divided equally if the relationship
ends, regardless of how they were originally acquired.
For example, someone entering a second marriage may already own a home they
intend to pass on to their children. A contracting out agreement can clearly state
that the property remains separate, helping to avoid disputes down the track.
This can provide peace of mind not just for the couple, but for their wider family
as well.
These agreements are also valuable for people bringing unequal assets into a
relationship — such as a business, investments, or KiwiSaver balances. Rather
than relying on default rules that may not reflect their individual circumstances,
couples can create a tailored arrangement that feels fair to both parties from the
outset.
Importantly, contracting out agreements are not about expecting a relationship to
fail. They are a practical form of financial planning — much like insurance.
Having open conversations early and documenting intentions clearly can significantly reduce stress and legal costs if circumstances do change in the future. To be legally valid, both partners must receive independent legal advice, and the agreement must be in writing, signed, and witnessed by each party’s lawyer.
This process ensures that both people fully understand their rights and the implications of what they are agreeing to.
Contracting out agreements are not just for the wealthy. They are a sensible, accessible tool that can help everyday New Zealanders protect their assets, provide for their children, and begin a relationship with clarity and confidence.
For more information visit www.franklinlaw.co.nz or contact Sarah on (09) 552 0622 sarahh@franklinlaw.co.nz
