WHAT SHOULD I KNOW ABOUT PROPERTY WHEN SEPARATING?

Separation or divorce is never easy, and when property is involved, it can add an extra layer of complexity. If you and your partner own a home together, figuring out what to do with it is one of the biggest decisions you'll face. This guide walks you through the practical, emotional, and legal steps of selling (or dividing) a shared property after separation in New Zealand. It’s designed to help you move forward with clarity, fairness, and the right support.

 

Step 1: Pause and Get the Right Advice

​

Before making decisions about the property, seek advice from:

• A family lawyer: To understand your legal rights and obligations

• A financial advisor: To assess your future housing and financial needs

• A relationship counsellor or mediator (optional): To support healthy communication
   

In NZ, the Property (Relationships) Act 1976 typically applies, which assumes equal division of relationship property—including the family home. But exceptions do exist. Learn more at:

• Community Law NZ

• Family Court NZ

• Sorted.org.nz for financial planning help

​

Step 2: Decide What Will Happen With the Home

​

There are generally three options:

1. Sell the property and split the proceeds

2. One party buys the other out

3. Delay the sale or decision (e.g. until kids are older)
    

Each choice has pros and cons. If selling, both parties need to agree on:

• The real estate agent

• Timing of the sale

• How sale proceeds will be divided

• Who pays for repairs, staging, legal fees, etc.
   

Consider a Relationship Property Agreement (or separation agreement) a must have, it helps formalise what you agree on. Your lawyers can draft it and file it with the Family Court if needed.

 

Step 3: Understand the Market and Get a CMA

​

To ensure decisions are made fairly, it’s essential to understand your home’s current market value. This is typically done via a Comparative Market Analysis (CMA) from a real estate agent, which compares your home with recent sales of similar properties in your area. You can also:

• Check recent sales on realestate.co.nz or Trade Me Property

• Ask your bank for a desktop valuation or full registered valuation
   

This information helps both parties negotiate from an informed position.

 

Step 4: Engage a Real Estate Agent You Both Trust

​

If selling the home, choose an agent both parties feel comfortable with. It may help to interview a few agents together and ask:

• How they handle sensitive sales (e.g. separations, deceased estates)

• What they charge and how commission is split

• How communication will be handled (e.g. regular updates to both parties)
   

Your agent should remain neutral and professional at all times, providing advice based on what’s best for the sale, not either party.

 

Step 5: Prepare the Home for Sale

​

If both parties are still living in the property, coordinate how open homes, tidying, and moving out will be handled. Consider:

• A joint timeline for repairs and presentation

• Agreeing on staging or keeping it neutral

• Splitting costs fairly (e.g. marketing, cleaning, minor updates)
   

If needed, refer to my 12-week home preparation timeline for a step-by-step approach.

 

Step 6: Selling, Accepting Offers, and Settlement

​

Once on the market, your agent will:

• Market the home neutrally and professionally

• Provide feedback to both parties equally

• Present any offers and explain conditions
   

Once a sale is agreed, your lawyers manage the settlement and disburse proceeds according to your separation agreement.

 

Final Thoughts

​

Selling a shared home after separation is both a legal and emotional process—but it can also be a healthy and freeing one. With the right support and a clear path forward, you can protect your financial future and start your next chapter on stronger footing.

Helpful Resources:

• Community Law NZ

• Family Court NZ

• Settled.govt.nz

• Sorted.org.nz