How long do I have to divide my relationship property?
The ending of relationships can be a difficult and confusing time. If your relationship has ended, there are a few parameters that might be helpful to keep in mind when you’re looking to divide your relationship property.
In New Zealand, there are time limits to apply to the court for an order dividing relationship property.
The time limits differ depending on the type of relationship. For:
Married or civil union couples the limit is 12 months from the date of divorce/dissolution.
De facto couples the limit is 3 years from the date of separation.
If you have not managed to enter into a settlement agreement about how your property is divided, you may need to apply to the court. The above deadlines are important, and working within them can make the whole process a lot smoother for everyone.
What happens if you miss the deadline?
If you miss the relevant one-year or three-year deadline, you do not automatically lose all rights, but you need to apply to the Family Court for leave (permission) to apply for a division of property. The court will consider this request based on the specific circumstances of your case. This is an additional administrative step which adds to cost, and it can be opposed by the other party.
Ensuring that each party has agreed and signed paperwork as early as possible is a recommended approach. Relying on a verbal or informal arrangement regarding the division of your property can result in further disruptions and issues later. There are cases involving informal arrangements where the court has granted leave (permission) to apply for a division of relationship property several years after separation.
Special considerations when Trust Property is involved
As a further word of warning, when you are married and trust property is involved, there is no strict time limit to make a claim against trust property if you qualify under s182 of the Family Proceedings Act. The Act simply requires the claim is made within a “reasonable time”.
Next steps after separation
If you have separated, it is best to speak with a lawyer and tidy up all matters in a settlement agreement or through the court process if an agreement cannot be achieved. It is a risk to stick your head in the sand or hope the waiting game will work.
At a time when emotions and confusion can be at the forefront, let us help you work with clear communication and outcomes to make sure the best decisions can be made. Get in touch with our Family Team at enquiries@toddwalker.com or +64 (03) 441 2743.
