Protecting a Lifetime of Hard Work and Saving
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Sexually Transmitted Debt*
In 2011 Time Magazine published an article based on a US debt company’s efforts to warn people of debt exposure when entering into a new relationship and highlighted the issue of people entering into relationships without thinking of the consequences if things somehow went badly. New Zealand law states that if you marry someone (or enter into a civil union, or live together for three years) then you might be liable for that debt if the relationship doesn’t work out. In addition if your partner is irresponsible with money and spending while you are together - and doesn’t tell you - then you could be paying the price of that trust for years to come. 
Relationship Property The law in New Zealand states when a marriage, de facto relationship or civil union ends, there is a presumption of equal sharing in all relationship property and relationship debt. The Property (Relationships) Act 1976 defines “relationship property” as all property acquired for or during the relationship. This also includes property acquired by one party prior to the relationship commencing, if it is used for the benefit of the relationship. The definition further states that relationship property includes the family home, whenever it is acquired. The family home is generally defined as the main residence for the couple or family during the relationship. In New Zealand it is possible to contract out from the presumption of equal sharing in all relationship property and debt. A contracting-out agreement (also known as a pre-nuptial agreement) protects each of the spouse’s or partner’s individual interests in property. Such an agreement specifies the ownership and entitlements of each party in the property and debt. Although a contracting out agreement can be obtained at any point during the relationship, it is recommended that an agreement is entered into as early as possible. * Phrase coined by CESI Debt Solutions, published Time Magazine 09 February 2011 |
Avoiding STD the Mature Way
A contracting out agreement is recommended when:
Death Happens - Plan For It When a couple gets married any previous wills in force for either party are instantly revoked unless the parties’ wills were specifically made in contemplation of marriage. This means that unless a new will is made, if a party dies they are intestate and their property will be divided according to the Administration Act 1969. Get Immunised You can protect yourself by doing some simple things such as discussing debt, property and death early on in the relationship. Seek the advice of friends or family who have been in long-term relationships or (more importantly) who have had relationships that have failed. It’s no fun having this conversation and we hope you never ever have to experience the sudden or unexpected end to what you expected would be a lifelong bond with someone. But having the conversation now, in a mature and serious way, will help you later in times of grief and stress. It is recommended that if you enter into either a contracting-out agreement or will that you seek the assistance of a lawyer. This is to protect your interests if/when you need to execute the agreement. If it has not been crafted with clear language and if you or your partner haven’t received competent legal advice at the time of signing, then you might end up having the agreement challenged in Court. |
What Does It Cost?
We're up-front with our fees, which include GST and any other hidden extras.
We're up-front with our fees, which include GST and any other hidden extras.
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Contracting Out Agreement General advice only (1 hour)
Drafting and advice (for the applicant) Independent Advice (for the co-signer) |
$279
$1,499 $999 |
Wills Simple will (one person)
Simple will (joint) Complex will (one person) Complex will (joint) |
$229
$339 $409 $699 |
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* Complex wills are those that involve trusts and other third-party mechanisms.
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