Relationship property, prenuptial agreement, a prenup. Have you got one, or been considering one?
We understand it can be a difficult subject to approach when it relates to someone close that you care about. But in our experience we know it is certainly important and best viewed with a proactive approach of ‘what if’, as opposed to ‘what now’, should the worst case scenario transpire.
A prenup sets out the terms and conditions of how property / assets are managed should there be a deterioration of that relationship. The reality is that you do not need to be married or in a civil union for you or your partner’s property to be called into question. From a legal perspective, the timeframe that a partner or spouse can claim half of the assets is three years' of living in the same residence in a 'de facto' or married relationship.
Essentially if you do not have an agreement in place, those assets are able to be split equally including KiwiSaver, potential for an inheritance, if you are a beneficiary of a trust, just to name a few examples.
It may be something you have considered previously, been putting off or needing updating to account for changes. We have compiled a list of useful considerations for those curious to know if having a prenup is the right option for your circumstances.