'Pre-nuptial' pacts on rise as law looms

By ANNE BESTON

De facto and gay couples are opting out of proposed matrimonial property laws by drawing up "pre-nuptial" agreements.

Lawyers report a rise in the number of couples asking for private property contracts before the passing of the Property (Relationships) Bill, probably in the middle of next year.

The bill will replace the 1976 Matrimonial Property Act and bring de facto and gay relationships under matrimonial property laws for the first time.

It could also give judges the power to vary the traditional 50/50 split contained in the current act if one partner has been financially disadvantaged by staying at home to bring up children.

Family lawyer George Ireland said there was a significant rise in de facto and gay couples "contracting out" of the proposed law even though most gay couples seemed happy to be included.

"The majority seem to be glad their relationships are getting some recognition at last." But some de facto couples were "vehemently opposed."

"They do not see why Parliament should interfere with their lives."

Lawyer Barbara Vague said property-sharing pacts - particularly among gay clients - had trebled in the past three months.

"At the moment there is a very strong perception, particularly among gay women, that what I have is mine and what you have is yours.

"But now if a relationship falls over, the low-income partner can put her hand out, and that is going to happen."

Lawyer Campbell Clark said long-term de facto couples, especially those who had been married before or who had substantial assets, were most likely to want an agreement.

"De facto couples are definitely concerned. They want to defend their property interests," he said.

Most private contracts listed private and joint assets and specified who would get what after a break-up. The agreements contained a clause saying the couple waived their rights under current or proposed matrimonial property legislation.

David Burns, a member of the family law section of the Auckland District Law Society, which made wide-ranging submissions on the bill, said the biggest problem would come when the legislation was passed and couples caught by the law rushed to protect assets. "I do not think a lot of people are aware of just how far-ranging this legislation will be. We are effectively going to marry 250,000 New Zealanders."

According to the 1996 census, 236,397 people were in de facto relationships compared with 1.3 million in legal marriages.

The chair of the electoral and justice select committee, gay Labour MP Tim Barnett, hoped the bill would be back before Parliament by the end of next month. He had no legal property pact with his partner of 17 years.

"I am not particularly materialistic, I do not have a problem with a 50-50 split. But you have to remember the new law will apply only to those who cannot agree and who have assets to divide. A lot of people simply do not."