Matrimonial Property Agreement NZ: What You Need to Know
Getting married is one of the most important decisions a person can make in their life. While it’s an exciting time, it’s also a time to think about what happens if things don’t work out. That’s where a matrimonial property agreement (also referred to as a prenuptial agreement) can come in handy.
In New Zealand, matrimonial property agreements are recognized by the law under the Property (Relationships) Act 1976. This act sets out the rules for dividing property when couples separate, and it allows couples to create their own agreement to determine how their property will be divided in the event of a separation.
What is a Matrimonial Property Agreement?
A matrimonial property agreement is a contract between the two parties involved in a marriage or a civil union. The contract outlines each party’s rights and responsibilities regarding property, debts, and assets in the event of a separation.
The agreement can be drawn up at any time, but it’s typically done before the marriage or civil union takes place. It’s important to note that both parties must agree to the terms of the agreement for it to be valid.
What Does a Matrimonial Property Agreement Cover?
A matrimonial property agreement can cover a wide range of topics. The most common areas covered in a matrimonial property agreement include:
1. Property ownership: The agreement can specify which property is owned by each party and how it will be divided in the event of a separation.
2. Debts and liabilities: The agreement can also address how debts and liabilities will be divided between the parties in the event of a separation.
3. Inheritance: The agreement can specify how inheritance will be handled if one of the parties passes away.
4. Business ownership: If one or both parties own a business, the agreement can address how that business will be divided in the event of a separation.
5. Spousal support: The agreement can specify whether or not spousal support will be paid and if so, how much and for how long.
Why Do You Need a Matrimonial Property Agreement?
A matrimonial property agreement can protect both parties in the event of a separation. It can help to avoid costly and stressful legal battles by providing a clear understanding of each party’s rights and responsibilities.
It’s also important to note that without a matrimonial property agreement, the rules in the Property (Relationships) Act 1976 will apply. This means that property will be divided equally between the parties, regardless of who owns what.
Conclusion
Getting married is an exciting time, but it’s also a time to think about the future. A matrimonial property agreement can provide peace of mind for both parties by outlining each party’s rights and responsibilities in the event of a separation. If you’re considering a matrimonial property agreement, it’s important to seek legal advice to ensure that your agreement is legally binding and provides the protection that you need.