What Happens to the Family Home in a Separation?

Separating from a partner is never easy – emotionally or legally. One of the most significant and often emotionally charged issues is what happens to the family home.
Whether you're married, in a civil union, or in a de facto relationship, the law in New Zealand provides a framework for dividing property when a relationship ends.

What the law says

Under the Property (Relationships) Act 1976, the general rule is that “relationship property” is shared equally between the two parties when a relationship ends, regardless of who paid for what.

In most long-term relationships (over three years), the family home is considered relationship property – even if only one person’s name is on the title or mortgage. This means both partners are typically entitled to a 50/50 share of its value.

This can come as a surprise, especially if:

• One partner owned the home before the relationship started
• Only one person contributed financially to mortgage repayments
• One partner took on more unpaid roles, like raising children or managing the household

What if we’re not married?

The rules still apply to de facto couples if the relationship has lasted at least three years – or even shorter, in some cases (especially where children or significant contributions are involved). So, if you've been living together and share a life together, the home may be up for division too.

Exceptions to the rule

There are a few situations where the equal-sharing rule might not apply:

• Short-duration relationships: If the relationship is less than three years, different rules apply, and the home may not be shared equally.
• Separate property: If there’s a Contracting Out Agreement (commonly known as a prenup or relationship property agreement), it may alter how the home is treated.
• Extraordinary circumstances: In rare cases, the Court may decide equal sharing is unfair and order a different division.

What are my options during separation?

When dealing with the family home, couples generally have a few options:

1. Sell the home and split the proceeds
2. One partner buys out the other’s share
3. Continue to co-own the home temporarily (e.g., for the children’s sake), with plans to sell or divide later

The right option will depend on your financial situation, any children involved, and what’s practical or emotionally manageable for you both.

Why legal advice matters

Dividing property after a separation isn’t always straightforward, and the family home often represents much more than just money. It’s security, stability, and a space filled with memories. That’s why it’s important to get independent legal advice as early as possible.

A lawyer can help you:

• Understand your legal rights
• Navigate tricky conversations
• Draft or review a Separation Agreement to formalise any division
• Work through related issues like mortgages, refinancing, or trust structures

If you’re going through a separation or thinking about one, we’re here to help you understand your options and move forward with clarity, confidence, and compassion.
You don’t need to face it alone.

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