Adverisement What is a prenuptial What is a section 21 Who should get one? agreement? Any couple can enter into a contracting out agreement. They are common among couples agreement and do you need one? A section 21 agreement, also known as a contracting out agreement, relationship property agreement or 'pre-nup" (agreement), is a written agreement that allows couples to make arrangements about the status, ownership and division of property upon separation or death, This agreement 'contract outs' of the equal- sharing relationship property rule under the Property (Relationships) Act 1976 (the Act). where one party: 1. has considerably more wealth than the other 2. has children from previous relationships 3. has particular items of property that they wish to keep separate. It is also becoming increasingly common for first home owners to enter into an Agreement where they have required assistance from their parents to purchase homes and it is important for the parents to ensure those funds are protected for the benefit of their child should that child's These agreements can cover any and all property owned by either party and the parties are free to decide on the division they see fit. relationship come to an end. An Agreement is the only way of preserving unequal interest where a family home is concerned. There are three types of typical agreements: 1. Ring-fencing specific assets ie. identify party's pre-relationship assets as separate and leaving the parties other property to Whilst these are the most common reasons, there are many situations when entering into a contracting out agreement may be appropriate. be dealt with in accordance with the Act. 2. Keeping all property separate - including When should I get one? each partners current property, income and future property. Anagreement can be made before or during a relationship. It is advised to get one earlier rather 3. Sharing increase in value of property. than later. It may not add to the feelings of marital bliss, but it could prove to be an invaluable asset in PR the future. PRLaw Contact PRLaw to make a confidential appointment. PRLaw.co.nz Ph: 03 211 0080 Adverisement What is a prenuptial What is a section 21 Who should get one? agreement? Any couple can enter into a contracting out agreement. They are common among couples agreement and do you need one? A section 21 agreement, also known as a contracting out agreement, relationship property agreement or 'pre-nup" (agreement), is a written agreement that allows couples to make arrangements about the status, ownership and division of property upon separation or death, This agreement 'contract outs' of the equal- sharing relationship property rule under the Property (Relationships) Act 1976 (the Act). where one party: 1. has considerably more wealth than the other 2. has children from previous relationships 3. has particular items of property that they wish to keep separate. It is also becoming increasingly common for first home owners to enter into an Agreement where they have required assistance from their parents to purchase homes and it is important for the parents to ensure those funds are protected for the benefit of their child should that child's These agreements can cover any and all property owned by either party and the parties are free to decide on the division they see fit. relationship come to an end. An Agreement is the only way of preserving unequal interest where a family home is concerned. There are three types of typical agreements: 1. Ring-fencing specific assets ie. identify party's pre-relationship assets as separate and leaving the parties other property to Whilst these are the most common reasons, there are many situations when entering into a contracting out agreement may be appropriate. be dealt with in accordance with the Act. 2. Keeping all property separate - including When should I get one? each partners current property, income and future property. Anagreement can be made before or during a relationship. It is advised to get one earlier rather 3. Sharing increase in value of property. than later. It may not add to the feelings of marital bliss, but it could prove to be an invaluable asset in PR the future. PRLaw Contact PRLaw to make a confidential appointment. PRLaw.co.nz Ph: 03 211 0080