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Whinery v Niu [2022] NZFC 5711

Published 16 September 2022

Relationship property division — contracting out agreement — separate property — Property (Relationships) Act 1976, ss 4, 8, 9, 13, 15, 16, 21, 21D, 21F & 21J. The parties had been married and subsequently separated. During the course of the relationship they lived in the family home, which was jointly owned by the applicant and the applicant's ex-wife. They had entered into a "contracting out" agreement, wherein it was stipulated that the applicant's half-share of the family home would become relationship property on a specified date. Once the parties separated, the family home was sold. Both parties had separate property which was not at issue in these proceedings. At issue was whether the respondent was entitled to a half-share of the applicant's share of the family home sale proceeds. The respondent submitted as per the contracting out agreement she was entitled to this half-share. The applicant submitted that section 16 of the Act applied and that an adjustment should be made in his favour. The Judge considered the agreement between the parties and noted that section 16 was not expressly contracted out of in the agreement. As such, it still applied. To allow the respondent a half-share of the applicant's share of the sale proceeds would be unjust to the applicant and result in a significant financial gain for the respondent, considering either of the properties owned by the respondent could have been the family home if they had chosen to live there. The Judge made a s 16 adjustment in favour of the applicant and confirmed that no portion of the sale proceeds of the family home were to be paid to the respondent. The Judge also ordered that the respondent was to pay the applicant $10,000 in respect of a car purchased during the course of the relationship.