Family Court makes order dividing relationship property of polyamorous (multi-partner) relationship…

The Family Court has decided that three former members of a polyamorous relationship will have to divide their property three ways in a relationship property division.

Background

Three individuals were part of a polyamorous relationship and lived together in a property that they jointly owned for 15 years. Two of the members were married, with the third being part of the relationship for more than three years.

When they separated the individuals could not agree on how to divide their relationship property, in particular, their family home that in 2017 had a capital value of $2.175 million.

One of the individuals brought an application to the Family Court for an order dividing relationship property. The Family Court decided that it was unable to make a decision on the relationship property question because it lacked jurisdiction.

The matter was then appealed to the High Court, which made the same decision.

These Courts decided that they lacked the jurisdiction to make a decision regarding the relationship property of a relationship of more than two individuals.

The case was then appealed to the Court of Appeal. In the Court of Appeal, the decisions of the Family Court and the High Court were overturned, with a finding that the Family Court did in fact have the jurisdiction to make a decision on the relationship property of a multi-partner relationship.
It was decided that they were entitled to make orders on the relationship property of a polyamorous relationship in the same way that they make orders on the relationship property of married couples, civil unions, or de facto relationships.

One member of the relationship then decided to take the case to the Supreme Court. The Supreme Court upheld the decision of the Court of Appeal, deciding that the Family Court does have the jurisdiction to make an order dividing the relationship property of a polyamorous relationship. The case was referred back to the Family Court, which could now make an order dividing the relationship property of the relationship.

Family Court decision

The Family Court had to decide:

• Whether the individuals were in a relationship that qualified for a division of relationship property under New Zealand law;
• If their relationship qualified, how should their relationship property be divided; and
• Whether any adjustments should be made to the division of relationship property.

The court decided that the relationship qualified for a division of relationship property. As two of the members were married, and the third had been part of the relationship for more than three years they were all part of a “qualifying relationship” under the Property (Relationships) Act, and that their relationship property was therefore subject to the principle of equal division.

The Family Court decided that the family home should be divided three ways between each individual within the relationship.

This resulted in one individual being ordered to pay over $600,000 to each of the other members of the relationship, to buy them out of their share in the family home.

It is crucial to understand your rights and obligations regarding your relationship property, as failing to get it right could be an expensive mistake.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

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