Services / Family Law / Contracting Out Agreements

ContractingOutAgreements

Contracting out (section 21) agreements to protect assets before, during, or after a relationship in New Zealand.

How we can help

A contracting out agreement - sometimes informally called a "prenup" - allows couples to agree on how their property will be divided if their relationship ends, overriding the default equal-sharing rules of the Property (Relationships) Act 1976. Under section 21 of the Act, these agreements can be entered into before, during, or after a relationship, and are a valuable tool for protecting pre-relationship assets, business interests, family inheritances, and other property.

At Indus Legal, we draft, review, and advise on contracting out agreements for couples across Auckland and wider New Zealand. For an agreement to be legally enforceable, strict procedural requirements must be met: each party must receive independent legal advice, the agreement must be in writing, and each lawyer must certify that they have explained the agreement's effect and any implications. Failure to follow these steps can render the entire agreement void - which is why experienced legal guidance is essential.

Whether you are entering a new relationship, getting married, bringing significant assets into a partnership, or receiving an inheritance you wish to keep separate, our family lawyers provide clear, sensitive advice. We ensure the agreement is fair, properly documented, and robust enough to withstand future challenge.

What we help with

  • Drafting section 21 contracting out agreements (before, during, or after a relationship)
  • Independent legal advice and certification as required by the Act
  • Protection of pre-relationship assets, business interests, and family inheritances
  • Agreements for couples entering de facto relationships, civil unions, or marriages
  • Reviewing and updating existing agreements after changes in circumstances
  • Advice on enforceability and the grounds on which agreements can be set aside

Frequently asked questions

Can a contracting out agreement be overturned by the court?

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Yes. Under section 21J of the Property (Relationships) Act 1976, the Family Court can set aside a contracting out agreement if it would cause serious injustice, or if the procedural requirements (such as independent legal advice) were not properly followed. This is why it is critical that the agreement is carefully drafted and both parties receive genuine independent advice.

Do both partners need their own lawyer?

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Yes. The Act requires that each party receives independent legal advice before signing a contracting out agreement. Each lawyer must sign a certificate confirming they have explained the effects and implications of the agreement. Indus Legal can act for one party and will recommend a trusted independent lawyer for the other partner.

When is the best time to put a contracting out agreement in place?

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Ideally, a contracting out agreement should be signed before the relationship begins or before moving in together, getting married, or entering a civil union. However, agreements can also be made during or after a relationship. The earlier the agreement is in place, the stronger the position for both parties.

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