16.08.2023

Supreme Court unanimously dismisses relationship property appeal. 

Last year we published an article titled The curious case of Sutton v Bell – How your de facto relationship status can impact your ability to restructure your property on the Court of Appeal decision in Sutton v Bell [2021] NZCA 645.  

In Sutton v Bell [2021] NZCA 645, the Court of Appeal held that if a couple are “in contemplation” of a de facto relationship, a court may set aside a disposition of property (such as the transfer of assets to a trust) under section 44 of the Property (Relationships) Act 1976 (the Act). 

Yesterday, the Supreme Court unanimously dismissed the appeal against the Court of Appeal’s decision.

Key takeaways

As noted in our earlier article, this case clearly demonstrates that if you dispose of property and that disposition defeats your partner’s rights under the Act when you are “contemplating” a de facto relationship, your partner will have recourse to that property under the Act.

The transition from a “dating” relationship to a de facto one is an evolution and can be a real grey area.  However, if you are considering moving in with your partner or your relationship is developing then it is important that you take formal steps to protect your separate property rights.  The most important being entering into a contracting out agreement under section 21 of the Act, also known as a relationship property agreement.  While these agreements can seem costly and awkward, they are the best way to protect your separate property.

If you have any questions about this article, please get in touch with our Private Wealth Team or your usual contact at Hesketh Henry.

Disclaimer:  The information contained in this article is current at the date of publishing and is of a general nature.  It should be used as a guide only and not as a substitute for obtaining legal advice.  Specific legal advice should be sought where required.

Do you need expert legal advice?
Contact the expert team at Hesketh Henry.
Kerry
Media contact - Kerry Browne
Please contact Kerry with any media enquiries and with any questions related to marketing or sponsorships on +64 9 375 8747 or via email.

Related Articles / Insights & Opinion

Privacy Commissioner to consult on Privacy Rules for Biometric Information
With the increasing use of facial recognition technology (FRT), retinal scans, and voice recognition by an array of different agencies, privacy concerns about its collection and use are set to be form...
24.11.2023 Posted in Business Advice
Fern forest NZ
Bioenergy in New Zealand: Fuels for the Future?
The energy transition from combustion fuels to low carbon alternatives is viewed as critical in the race to cut global CO2 emissions and reach climate targets.  We look at some of the opportunities p...
14.11.2023 Posted in Business Advice & Climate Change & Forestry
Will Wide BW
A well drafted will is a craft
The New Zealand do-it-yourself “DIY” attitude and way of life is not limited to home improvements, but sometimes also extends to wills.  Recently we had a DIY $5.99 fill in the blanks will acros...
07.11.2023 Posted in Private Wealth
rsz large pillars
Health and Safety: The Consequences of Dishonesty
Siddhartha Gautama said that lies are like huge, gaudy vessels, the rafters of which are rotten and worm-eaten, and that those who embark in them are fated to be shipwrecked.  Two remarkable health a...
03.11.2023 Posted in Employment & Health & Safety
Properly sequencing your Construction Adjudications: Henry Construction Projects Ltd v Alu-Fix (UK) Ltd
According to the UK’s Technology and Construction Court (TCC) (in Henry Construction Projects Ltd v Alu-Fix (UK) Ltd [2023] EWHC 2010) valid payment claims must be paid before the underlying merits ...
30.10.2023 Posted in Construction & Disputes
Key change to rules on distribution of surplus assets under the new Incorporated Societies Act 2022
On 5 October 2023, the new Incorporated Societies Act 2022 (2022 Act) came fully into force, replacing the Incorporated Societies Act 1908 (1908 Act). One of the key requirements under the 2022 Act is...
18.10.2023 Posted in Business Advice
Construction Framework Wide BW
Major milestone passed – NZS3910:2023 expected in time to fill Christmas stockings
As the most widely adopted standard form construction contract in NZ, NZS 3910 was more than ready for updated conditions given the changes in the industry since its last review in 2013.  After almos...
09.10.2023 Posted in Construction
SEND AN ENQUIRY
Send us an enquiry

For expert legal advice, please complete the form below or call us on (09) 375 8700.