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As we reflect on a disruptive year for most people and businesses due to COVID-19, we look forward to 2022 and the improvements that might bring us closer to the normality we've previously enjoyed.
The lifting of travel restrictions is good timing for Christmas, allowing families and loved ones to reunite. So we've made sure we're ready to help you with the kinds of legal solutions that can be helpful for families. Relationship property, trusts, wills, prenuptial agreements - be sure to call us if you or someone you know needs advice.
Our Christmas/New Year break
We'll be at the office until 5pm on 23 December, and will return for 2022 at 8:30am on 17 January. But as always, we'll be just an email or phone call away for any urgent needs over that period.
Trusts: an increasingly popular option for home ownership
The number of residential properties held in trusts has grown by 48 percent since 2015, according to data from Valocity and reported by Stuff. Over the same period, the total number of residential properties grew by less than 10 percent, suggesting trusts are trumping other forms of ownership.
There are a number of advantages to trusts, including protection from creditors and relationship property claims. Trusts can provide greater certainty that property can pass to your children, which given the rate at which the market changes, is very reassuring.
But one of the major reasons the number of trust-held properties might have increased is highlighted by University of Auckland law professor Mark Henaghan in the same Stuff article: trusts can reduce one's tax burden.
Housing price growth slows... though maybe not in Christchurch
Speaking of housing, while values continue to go up nationally, the rate at which they're doing so dropped for the first time since August 2020. November house prices were up 1.8 percent from the previous month, compared with a 2.1 percent increase between September and October.
This may be due to tightening of credit from higher interest rates. Momentum may continue to slow into 2022 with new rules affecting LVR loan ratios, and the new Credit Contract and Consumer Finance Act requirements and their impact on bank lending.
Christchurch, however, bucks the trend. Quarterly rate of growth hit an annual high at 10%, as did annual rate of growth at 35.5%. The average property in Christchurch is now above $700,000 for the first time. At the same time, the number of listings available are down a quarter from this time last year.
If it's the right time for you to buy or sell, we're making it easy. For Legalchat readers, we're still offering 20% off our conveyancing fees for any agreement entered into before Christmas, even if it settles next year. Contact our legal executive Angela if you're in the market (angela@canterburylegal.co.nz, 021 329 371).
The Family Court, property rights and polyamorous relationships
Relationship property rights are fairly well-established when it comes to couples. There'd be very few situations where the Family Court's jurisdiction to decide a case would come into question.
The law is less clear when it comes to people living in polyamorous relationships. It came into the spotlight in a recent Court of Appeal case, Paul v Mead. A married couple, the Pauls, met Mead in 1999, formed a polyamorous relationship three years later, then lived together in the same home for 15 years. The home was bought in Mead's name, who had paid the deposit.
At the end of those 15 years, they all separated from each other. The Pauls each claimed a one-third share of the property under the Property (Relationships) Act. Mead argued the PRA did not apply to such relationships at all, and the High Court agreed.
The Court of Appeal felt differently. Addressing the question of whether the Family Court had jurisdiction to determine property rights in polyamorous relationships under the PRA, the judges held it was possible. While the PRA still applied only to relationships between two people, there could be multiple qualifying relationships in a polyamorous relationship. In this case, one between the Meads, and two between Paul and each of the Meads. The case may now head to the Family Court.
Needless to say, whatever kind of long-term relationship you may enter into, it's important to make sure you're all on the same page about your assets. If you know of any relationships blossoming over the holiday period, or you know a situation which might need a little advice, contact us for experienced, sensitive support.
We trust you've enjoyed our Legalchat over the past year, in which we like to keep you updated on some of the legal developments that have caught our eye and interest. We'll be back in 2022, so for now, may we take this opportunity to wish you a merry Christmas, and a happy and prosperous new year.
Again, we'll be just an email or phone call away over the holiday break for any urgent needs. Otherwise, see you in 2022!
The lifting of travel restrictions is good timing for Christmas, allowing families and loved ones to reunite. So we've made sure we're ready to help you with the kinds of legal solutions that can be helpful for families. Relationship property, trusts, wills, prenuptial agreements - be sure to call us if you or someone you know needs advice.
Our Christmas/New Year break
We'll be at the office until 5pm on 23 December, and will return for 2022 at 8:30am on 17 January. But as always, we'll be just an email or phone call away for any urgent needs over that period.
Trusts: an increasingly popular option for home ownership
The number of residential properties held in trusts has grown by 48 percent since 2015, according to data from Valocity and reported by Stuff. Over the same period, the total number of residential properties grew by less than 10 percent, suggesting trusts are trumping other forms of ownership.
There are a number of advantages to trusts, including protection from creditors and relationship property claims. Trusts can provide greater certainty that property can pass to your children, which given the rate at which the market changes, is very reassuring.
But one of the major reasons the number of trust-held properties might have increased is highlighted by University of Auckland law professor Mark Henaghan in the same Stuff article: trusts can reduce one's tax burden.
- In April, the top personal tax rate for individuals increased to 39 percent.
- The top tax rate for trusts remained at 33 percent.
Housing price growth slows... though maybe not in Christchurch
Speaking of housing, while values continue to go up nationally, the rate at which they're doing so dropped for the first time since August 2020. November house prices were up 1.8 percent from the previous month, compared with a 2.1 percent increase between September and October.
This may be due to tightening of credit from higher interest rates. Momentum may continue to slow into 2022 with new rules affecting LVR loan ratios, and the new Credit Contract and Consumer Finance Act requirements and their impact on bank lending.
Christchurch, however, bucks the trend. Quarterly rate of growth hit an annual high at 10%, as did annual rate of growth at 35.5%. The average property in Christchurch is now above $700,000 for the first time. At the same time, the number of listings available are down a quarter from this time last year.
If it's the right time for you to buy or sell, we're making it easy. For Legalchat readers, we're still offering 20% off our conveyancing fees for any agreement entered into before Christmas, even if it settles next year. Contact our legal executive Angela if you're in the market (angela@canterburylegal.co.nz, 021 329 371).
The Family Court, property rights and polyamorous relationships
Relationship property rights are fairly well-established when it comes to couples. There'd be very few situations where the Family Court's jurisdiction to decide a case would come into question.
The law is less clear when it comes to people living in polyamorous relationships. It came into the spotlight in a recent Court of Appeal case, Paul v Mead. A married couple, the Pauls, met Mead in 1999, formed a polyamorous relationship three years later, then lived together in the same home for 15 years. The home was bought in Mead's name, who had paid the deposit.
At the end of those 15 years, they all separated from each other. The Pauls each claimed a one-third share of the property under the Property (Relationships) Act. Mead argued the PRA did not apply to such relationships at all, and the High Court agreed.
The Court of Appeal felt differently. Addressing the question of whether the Family Court had jurisdiction to determine property rights in polyamorous relationships under the PRA, the judges held it was possible. While the PRA still applied only to relationships between two people, there could be multiple qualifying relationships in a polyamorous relationship. In this case, one between the Meads, and two between Paul and each of the Meads. The case may now head to the Family Court.
Needless to say, whatever kind of long-term relationship you may enter into, it's important to make sure you're all on the same page about your assets. If you know of any relationships blossoming over the holiday period, or you know a situation which might need a little advice, contact us for experienced, sensitive support.
We trust you've enjoyed our Legalchat over the past year, in which we like to keep you updated on some of the legal developments that have caught our eye and interest. We'll be back in 2022, so for now, may we take this opportunity to wish you a merry Christmas, and a happy and prosperous new year.
Again, we'll be just an email or phone call away over the holiday break for any urgent needs. Otherwise, see you in 2022!
Regards,
Clive, Grant and the Team at Canterbury Legal
