Separation or divorce is a stressful and upsetting time. It also unfortunately negatively impacts any wealth that has built up and any preparations we’ve made for the future. Sometimes the only thing to do is get life back on track by taking control of our income, debts and spending. We can start by taking stock of the day-to-day finances, then work up to tackling longer-term money issues.

Getting started

The first step is to reorganise your finances without your ex-partner. If they took care of the money, you need to work out how things were organised and see if you need to make any changes. Now’s the time to focus on getting set up for the future – this could be a whole new start.

• Talk to a lawyer: They’ll be able to advise you and help freeze any joint accounts, separate any property held in both names, take legal action if property is held in your partner's name to prevent its sale before final property settlement, and update your will.
• Set up new bank accounts: It’s time to set up your own bank accounts that only you can access and make sure your pay goes into one of these. You should also change the passwords and PIN numbers on any accounts in your name that your ex may have had access to. This also applies to credit cards and accounts with overdrafts or loan facilities. These need to be addressed so that new debt can’t be created by your ex that you might be obligated to pay back.
• Check that bills get paid and that automatic payments and debt repayments are made: Bad debts that are in joint names could affect your credit reports. You may need to freeze or close joint store cards or loans until they are transferred to one name. A few months after the break-up, you can check your credit record by getting a copy from each of the credit reporters.
• Update the rental agreement: If you were renting and your name is on the lease you could be liable for unpaid rent or property damage caused by your partner.
• Work out your net worth: This can be done by listing all your assets and any debts or joint debts in your name - use the Sorted net worth calculator.

"Beware of little expenses - a small leak will sink a great ship."

- Benjamin Franklin

Relationship property law

De facto relationships

In most cases, the Act only covers ‘de facto’ couples who have lived together in a relationship for at least three years.

But even if your relationship lasted for less than three years, you may still be covered by the Act if you have a child, or if you’ve made a substantial contribution to the relationship.

Married couples and civil union partnerships

Married couples and civil union partnerships are covered by the Act from the date of the marriage or civil union. If a marriage or civil union has lasted less than three years, different rules apply to the division of property.

There’s more detail about relationship property on the Ministry of Justice website.

There’s also useful information about dividing up relationship property, living together and what happens in a break-up on the NZ Law Society website.

If separation means a change in household income, it's important to know exactly where the money comes from and where it goes.

After a relationship break-up you may need to update your will – particularly if you want to change any references to your ex-partner.

Child support

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