A formal agreement under the Property (Relationships) Act 1976 that records how relationship property - including the family home - is divided between separating partners. Both parties must receive independent legal advice before signing.
A relationship property agreement is a written agreement made under the Property (Relationships) Act 1976 that records how relationship property is to be divided between parties who are separating, or who wish to contract out of the default equal-sharing rules. It is also known as a section 21 agreement (after the section of the Act that authorises it).
What it covers
Relationship property generally includes:
- The family home, regardless of whose name it is in
- Relationship property chattels (furniture, vehicles, and other household property acquired during the relationship)
- Business interests acquired during the relationship
- Increases in value of separate property that are attributable to relationship contributions
A relationship property agreement can record the agreed division of all of this, or it can deal with one specific asset - for example, the family home only.
The independent legal advice requirement
Before a relationship property agreement is binding, both parties must:
- Have the agreement explained to them by an independent lawyer (not the same lawyer advising the other party)
- Sign a certificate confirming they received that advice and understood the effects and implications of the agreement
An agreement signed without these certificates is voidable - meaning either party can apply to the court to have it set aside. This requirement exists to protect parties from entering agreements without understanding what they are giving up.
How it connects to a property title transfer
In a separation, the relationship property agreement and the Landonline title transfer are two separate legal steps that happen together. The agreement records the terms of the division; the transfer updates the Record of Title to reflect those terms. Your lawyer prepares both and ensures they settle simultaneously.
What NZ Legal does
Where one party is buying out the other, we prepare the transfer documentation and tax statements as part of our fixed-fee service. Where a relationship property agreement is required, we scope that work separately and confirm the fee before we begin. Both parties must have independent legal representation for the agreement - where we act for one party, we cannot advise the other.
