Living Apart Together (LAT): Does the Property (Relationships) Act Apply to You?
In the modern Christchurch dating landscape, a new trend is emerging: "Living Apart Together," or LAT. These are couples who are in a committed, long-term relationship but choose to maintain their own separate residences. For many—especially those who have already been through a separation or have children from previous relationships—this arrangement offers the perfect balance of companionship and independence.
The common assumption among LAT couples is that by keeping their names off each other's titles and living under separate roofs, their assets remain 100% protected. They believe that because they haven't "moved in," the Property (Relationships) Act 1976 (the PRA) cannot touch their home, their KiwiSaver, or their business.
However, at Weston Ward & Lascelles, we are seeing an increasing number of cases where this assumption is proven wrong. In New Zealand, the law is far more nuanced than simply looking at a physical address. Under the PRA, you can be deemed to be in a "de facto relationship" even if you have never shared a bed under the same roof full-time.
Understanding the "De Facto" Trigger
To understand the risk, we must first understand how the law defines a relationship. The Property (Relationships) Act applies to married couples, civil union partners, and—most crucially for LAT couples—de facto partners who have been together for three years or more.
Under Section 2D of the Act, a de facto relationship exists between two people who are both aged 18 or older, who live together as a couple, and who are not married or in a civil union.
The "Heavyweight" legal question that often arises in Court is: What does "live together as a couple" actually mean?
The New Zealand Courts have made it clear that "living together" does not require 24/7 cohabitation. Instead, the Court looks at the "nature of the relationship" as a whole. You can be "living together as a couple" in a legal sense while maintaining two separate physical households.
The "Six Pillars" of a Relationship: What the Court Looks For
When a relationship ends and one partner claims a share of the other’s assets, the Court will evaluate whether a de facto relationship existed by looking at several factors. These include:
- The Duration of the Relationship: Usually, the "three-year rule" is the threshold for equal sharing of relationship property.
- The Nature and Extent of Common Residence: While you may have separate homes, does one partner spend four nights a week at the other's? Do you have your own drawer, a toothbrush, or a key?
- The Degree of Financial Dependence or Interdependence: Do you share a Netflix account? Do you pay for groceries together? Have you provided financial support or acted as a guarantor for the other?
- The Ownership, Use, and Acquisition of Property: Even if a house is in one name, has the other partner helped with renovations, gardening, or mortgage payments?
- A Mutual Commitment to a Shared Life: Do you holiday together? Do you attend family events as a couple?
- The Reputation and Public Aspects of the Relationship: How do your friends, family, and colleagues see you? Do you post as a couple on social media?
If the "weight" of these factors suggests you are a couple, the law may treat you as de facto—meaning the 50/50 split rules could apply to your assets, regardless of whose name is on the deed.
The Hidden Danger for Christchurch Homeowners
For many people in NZ, the family home is the most significant asset. In a traditional relationship, the "family home" is easily identified. In a LAT relationship, the lines get blurred.
If the Court determines you are in a de facto relationship, one partner may be able to claim a 50% interest in the other partner’s home, even if they never officially moved in. This often happens when the couple spends the majority of their "couple time" at one specific residence, effectively turning that property into the "family home" in the eyes of the law.
For business owners and those with significant KiwiSaver balances, the risks are equally high. Once the three-year threshold is crossed, the increase in the value of your business or your retirement fund during the relationship may be considered relationship property.
The "Heavyweight" Solution: Contracting Out Agreements
At Weston Ward & Lascelles, we believe in Providing Certainty. You should be able to enjoy your relationship without the looming fear of a future legal battle over your assets.
The only way to ensure that "Living Apart Together" actually protects your property is through a Contracting Out Agreement (commonly known as a Prenup).
A Contracting Out Agreement allows you and your partner to decide exactly how your property will be divided if the relationship ends. You can specify that your home, your business, and your investments remain "separate property," regardless of how long the relationship lasts or how much time you spend at each other's houses.
Why a "DIY" agreement won't work: For a Contracting Out Agreement to be legally binding in New Zealand, it must meet strict criteria. Some of the rules are:
- It must be in writing and signed by both parties.
- Each party must receive independent legal advice from a specialized lawyer.
- The signature of each party must be witnessed by a lawyer who certifies that they explained the effect and implications of the agreement.
Without these steps, the agreement is effectively a piece of paper that a Court can easily set aside.
Why Choose Weston Ward & Lascelles?
With a 140-year legacy in Christchurch, WWL is uniquely positioned to navigate the complexities of modern relationship law. We combine "Heavyweight Advocacy" with a common-sense approach that respects the unique nature of LAT arrangements.
Our Family Law team is led by specialised practitioners who understand that every relationship is different.
Kristy O’Connor, a director with over 40 years of experience, is a leading voice in
Relationship Property and Family Law disputes. She provides the expert guidance required to ensure that even the most complex separations are handled with certainty and grit. Whether you are at the beginning of a LAT relationship and want to protect your assets, or you are facing a claim from a former partner, Kristy and the team offer the sophisticated advocacy you need.
Certainty for Your Future
Living Apart Together is a wonderful way to build a life with someone while maintaining your own space. However, don't let the physical distance between your front doors give you a false sense of security. The law in New Zealand is designed to protect partners, and without the right legal safeguards, your independence could come at a high financial cost.
If you are in a committed relationship and want to ensure your assets are protected, the time to act is now—before you hit that critical three-year mark.
From our established legal chambers in Riccarton, Weston Ward & Lascelles remains your heavyweight advocate.
We provide the frank, practical advice you need to move forward with confidence.
Contact Us Today
Ready to provide certainty for your assets? Contact our Christchurch Family Law team today to discuss a Contracting Out Agreement tailored to your lifestyle.
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