November 2025

One of the most frequent questions we get asked by new clients is why do we need lawyers to investigate everything when we just agree?

When couples separate or wish to make arrangements about how their property will be divided, having a lawyer is not just helpful, it is essential if you want your agreement to be valid and enforceable. Most people value certainty and once explained, understand the wisdom of having an enforceable agreement so they can confidently move on with the next stage of their lives.

In New Zealand, there is legislation that specifically deals with relationship property – namely, the Property (Relationships) Act 1976 (Act). Sections 21 and 21A of the Act allows couples to contract out of the equal-sharing provisions, meaning that if both parties agree, they can decide how to divide their assets and debts in a way that suits their circumstances, rather than following the default 50:50 sharing provisions.

These agreements can be made during the relationship, after separation, or even pre-emptively before certain life changes. However, the law places strict requirements on how these agreements are prepared and signed, and this is where a lawyer’s role becomes vital.

Under the Act, a relationship property agreement will only be binding if it is in writing, signed by both parties, and each party has received independent legal advice about its effects and implications. The lawyer for each party must also witness that person’s signature and certify that they have advised their client about the effects and implications of the agreement. This certification is more than a formality. It ensures that each party understands the legal consequences of the agreement before committing to it. Without meeting these formal requirements, an agreement will be void and unenforceable.

In order to be able to provide that important certification, a lawyer will need to:

• Understand your circumstances and identify relevant assets and liabilities – ensuring that all relationship property is both captured and assigned value including the seeking of valuations. Full disclosure of assets is essential. A lawyer cannot advise what the value of a 50% share of the relationship property pool is without understanding the total value of the relationship property pool.
• Explain the law – covering what the Act would provide if no agreement was entered into.
• Assess fairness and risks – assessing to what degree the proposed agreement is consistent with the law or otherwise meets your needs and whether there are potential legal or financial pitfalls.
• Draft or review the agreement – ensuring clarity, precision, and compliance with legislative requirements so that it stands up to scrutiny. If a draft agreement is difficult to understand or ambiguous, it will be difficult to explain the effects and implications of it, so your lawyer’s first advice might be that the agreement needs to be better drafted.
• Protect against future disputes – this is particularly important if you are contracting out of the Act and circumstances may change over time.
• Independent legal advice is crucial because these decisions often involve significant financial consequences – for example, retaining a family home, dividing investments, or splitting business interests. Without sound and considered advice, one party may inadvertently give up rights worth far more than they realise. This risk is higher for the non-owning or less financially savvy partner.

Courts can set aside agreements made under the Act that cause serious injustice, especially if a party did not understand its implications or was under undue pressure to sign an agreement. The process that was followed before the parties entered the agreement will be closely scrutinised as the courts are not comfortable with agreements entered into with undue haste without good reason.

A good lawyer will avoid this by making sure their client follows a good process and has the benefit of their advice, the benefit of valuations on the key assets, has time to consider that advice, and that the client will enter into the agreement with full knowledge of its implications. A lawyer should also explain how the agreement interacts with other legal issues, such as trusts, inheritances, or tax obligations and seek further input from other professionals as and when necessary so the full picture is established.

In short, you need a lawyer in relationship property matters not just because the law requires it, but because the stakes are high. A well-advised, properly considered relationship property agreement will provide certainty and provide the best protection for ensuring that the assets that you have worked so hard for will not be the subject of a claim later down the track.