Property law for de facto couples attacked

The National Party says it would change new property laws that ride "roughshod" over couples who choose not to marry.

Under the Property (Relationships) Amendment Act, which takes effect today, de facto couples - including those of the same sex - who have lived together for three years or more are treated the same as married couples if they separate.

The law provides for property to be shared equally on separation or the death of a partner, but compensation can be awarded by the courts where there are economic differences between the spouses and partners after the relationship is over.

Yesterday was the last chance for existing de facto couples to contract out of the law change and sign an agreement about how their property should be divided if they break up. However, to prepare the contract, couples were required to take legal advice.

National's justice spokesman, Wayne Mapp, said if his party won the election this year it would change the qualifying period to five years so that only relationships where "commitment has lasted" would be covered.

"Statistics show 75 per cent of couples who don't marry separate within four years but the Government's law will apply to all relationships lasting more than three years," he said.

An estimated 236,000 people will be affected by the new legislation.

"The Government has run roughshod over the choice of couples who choose not to get married," Dr Mapp said.

"Lawyers are telling me there have already been a number of couples separate because this legislation has caused them so much stress."

Lawyers said they had been flooded with inquiries yesterday from worried de facto couples wanting to protect their assets from the law.

Contracts had to be made in writing and after seeking independent legal advice, and cost up to $2500.

Family law specialist and New Zealand Law Society spokesman David Burns said couples were rushing to sign agreements.

Depending on the complexity of opting-out contracts, it could cost between $700 and $2500 for an agreement.

"There seems to be a big panic because the act is coming into force," said Mr Burns.

"There are going to be significant challenges for the Family Court judges in exercising the discretion they have under the law."

Act MP Stephen Franks said contracting out might not work as one partner could tell the court he or she had been forced to sign the contract or face splitting up.

"Sadly, a more reliable safeguard was to end the relationship before today and then perhaps invite the former partner back to a new relationship, but on condition of signing an opt-out."

The legislation had a stormy passage through Parliament, with Opposition MPs claiming that many couples would break up rather than sign a contract or be subjected to the law.

Attorney-General Margaret Wilson said the passing of the law represented long-awaited reform for many people who had been subjected to "gross unfairness" and "serious injustices" under the old law.

"Why should people in de facto and same-sex relationships be treated differently to a married couple?

"Fundamentally they have a right to a fair deal, too."

- NZPA