Separation a Costly Business

It sure can be, but does it have to be? The answer is no, but only if you have the right protection for your assets.

A recent issue of the NZ Listener focused on the expense of divorce/separation, particularly for those who may halve their assets following a first relationship breakdown and then need to halve them again following a second relationship break-up.

It also looked at the risk of Contracting Out Agreements (formerly known as pre-nuptials) being overturned by the Courts, particularly if the Agreements do not comply with a number of procedural requirements.

So, how can you protect your assets? The key is to get expert advice. Contracting Out Agreements can protect your assets and ensure they remain your separate property, but they must be drafted and executed properly. Each party to the Agreement must receive independent legal advice as to the effects and implications of it for any such Agreement to be valid.

Some people are put off by the cost of such Agreements or because the conversation with their partner is too delicate a subject. However, this needs to be weighed against what one stands to lose without adequate asset protection in the unfortunate event that a relationship breaks downs.

Trusts can also be a useful way of protecting assets, but with the Courts having more powers to make directions regarding trust assets/income, once again expert advice is required.

If you would like further information on protecting your assets, or would like your current asset protection arrangement reviewed, please contact us on (04) 473 6850.