Some Advice From Bell & Co. On Dividing Marital Assets

Kiwi couples in the middle of a messy separation could soon be helped by a law change. A divorce lawyer is urging the Government to change the rules about how assets are divided when couples split. It's the rule of thumb since 1976, that if you live together for three years, you have to share your property 50/50 in a break-up.

The New Zealand Law Commission has been reviewing the current legislation for several months, and next week their proposals for change of what happens to property when a relationship ends will be made public.

All marriages and civil unions, alongside de facto relationships, come within the 1976 Act. It should be noted that there are different rules for de facto relationships and marriages of less than three years. The Act is guided by the principles of equality between men and women and the economic effects of ending the relationship.

As it stands at the moment,Section 8 of the Act sets out what comes within relationship property. This includes the family home, chattels, jointly owned property, life insurance policies and superannuation funds. When starting the separation process, it is important to ascertain the current value of things that you and your partner own. Being able to determine this will help your lawyer to understand your property.

Coming to a private agreement is the best way to work through dividing relationship property. This will better preserve relationships, which can be crucial where children are involved. In order for an agreement to be enforceable, it must be written and both parties must have taken legal advice.

If an agreement cannot be reached between parties, either party can make an application to the Family Court. Applying to the Family Court to determine the division of relationship property will take the control out of the parties’ hands. This means that the division of property will remain squarely within the Family Court Judge’s discretion. These two difficulties highlight the advantages of coming to an agreement over assets outside of the Family Court. However, situations may dictate that Court determination is needed.

Going through separation can be a stressful time. For more guidance and support on dividing marital assets, contact your family lawyers at Bell & Co on 04 49994014, and for more information on child custody lawyers, employment lawyers Wellington and employment law please go to http://www.bellandco.co .