Ex-Files: Jeremy Sutton on the challenges of merging your finances with a new partner

opinion:

Q: I recently met my new partner, Stuart, online after separating from my ex-husband three years ago. Stuart and I have an adult child who has “run away from the nest.”

Stuart recently
I sold the construction company and retired. I know he sold well, but I don’t know his sales figures.

I have about $800,000 from a related property settlement from my marriage.

Stuart wanted to buy a lifestyle block outside Auckland and suggested we buy one together. All the properties I’ve seen so far are around $4 million.

I work for an insurance company in central Auckland. I was planning to retire in about 5 years, but if I move to the suburbs of Auckland, it will be difficult to commute, so I will have to retire immediately.

How do you protect relationship property and adult children?

A: The Relations Act was not drafted with “subsequent relations” in mind. If you have been in a de facto relationship for three years, the normal “equal sharing” provisions apply if you break up.

Being in a strong financial position, it can be expected that Stuart will probably want to prepare an outsourcing contract.

Purchasing a living block

This property is the “family home” and is, under the law, related property (shared equally). However, given the difference in the amounts you are proposing to donate, it may be fairer for you and Stuart to divide the donation into 1/4 and 3/4.

You should also consider:

1. Whether the increase in the value of the asset is divided in equal proportions, and if not, in what proportion.

2. How will property expenses be met in the event of dating and separation (especially given the lack of income and other assets)?

3. What happens to the property if separated: whether to sell, how one party will acquire the other, and/or whether either party must be allowed to occupy the property for a period of time before the sale. please.

Artwork inherited from mother

Artwork, even though it was inherited, can become “family personal property,” the property of a relationship. This is especially true if you choose to hang the pieces on the walls of your lifestyle block.

Spousal Retention Considerations

If you and Stuart separate, all funds will be tied up in the Lifestyle Block and you will have no employment income. You can’t “opt out” of the spousal support law, so you can claim spousal support. If you are divorced, you may consider negotiating a clause requiring Stuart to provide you with immediate financial assistance.

Financial disclosure

You don’t know the exact details of Stuart’s business sale. Before signing a subcontracting agreement, ideally before any negotiations take place, you should have a clear picture of Stuart’s financial situation. We recommend that you request a written confirmation of details of his assets, liabilities and sources of income (if any) through his attorney.

death

It is wise to record the arrangement in the out-of-contract contract in the event of the death of either party. Otherwise, there is a risk of conflict between survivors and the family of the deceased. Arrangements must be fair to both you and Stuart as well as your children.

1. What preparations should be made to ensure a comfortable life for survivors?

2. Should survivors be allowed to continue living in the lifestyle block (or other family homes purchased instead)? Are there funds available to the children of the deceased in the event of a need for funds, if the survivor has the right to occupy them?

3. How will property expenses be met?

You must ensure that your will is up to date and consistent with the terms of your contract. You and Stuart may decide to share the details of what you agreed to with your children so that there are no “surprises” when one of you dies.

Conclusion

It’s important to remember that there are no “right” or “wrong” answers to these questions. It is for you and Stuart, under the guidance of your respective attorneys, to negotiate an arrangement that you consider fair.