Divorce or Separation: Do I Have To Share My Kiwisaver Balance?
Most people know their assets are subject to relationship property claims following a divorce or separation. However, not many people realise that this can include their KiwiSaver balance.
The Property (Relationships) Act requires equal asset division following a divorce or separation. This means that any contributions made to your KiwiSaver or any other superannuation scheme(s) during your relationship and the growth from those contributions are considered relationship property.
What part of the KiwiSaver scheme is subject to claims from my ex?
The amounts you contributed when you and your ex were together (plus any gains made from this money) are subject to equal division with your ex. Effectively, this covers all contributions you, your employer and the government made to your KiwiSaver from the date you started living together as de facto partners (or date of marriage if you did not live together before marriage) until the date of separation.
Can I refuse to divide my KiwiSaver balance at all?
Generally, parties can agree on how to divide your assets without going to Court. So if you can agree with your ex to let you keep all your KiwiSaver balance, there is nothing to stop you from doing so. You might negotiate with them by offering other assets of similar value, like cash or personal items like a car or furniture.
After you and your ex reach an agreement, you will sign a legally enforceable relationship property agreement. Your lawyer will then instruct the KiwiSaver manager to put the agreed amount of investment funds into your ex-partner’s KiwiSaver balance or bank account.
Alternatively, you can apply for a Court order, but this can be both time-consuming and expensive.
We can help!
Focus Law has extensive knowledge of assisting clients going through a divorce or separation. Contact us to talk to one of our team members at 09 366 6860, info@focuslaw.co.nz, or by filling out our secure and confidential contact form.
