The Ex-Files: How to access KiwiSaver funds after separation
Question: I have recently separated from my partner after being in a de facto relationship for six years. I have about $70,000 in my KiwiSaver and my ex-partner has about $30,000 in their KiwiSaver. We both started KiwiSaver after our de facto relationship started. Do I have to give my ex any of my KiwiSaver, and if so, how do I do that if I cannot afford to pay them out?
Answer:
What happens to KiwiSaver after a relationship ends?
If you separate after being in a de facto relationship for three or more years, the portion of your KiwiSaver that accumulated during the relationship is considered “relationship property”. There is a presumption that relationship property is divided equally, unless certain exceptions apply. Contributions made before the de facto relationship started will remain your separate property as well as contributions made after separation.
Calculating the relationship portion
If you only started contributing to KiwiSaver after your de facto relationship started, the whole of your KiwiSaver balance at the date of separation will be relationship property. You will need to provide proof of the balance of your KiwiSaver at the date of separation. But there may be situations where it is not fair to value the account at the date of separation and other methods may be used.
If you were contributing to KiwiSaver before the de facto relationship started, the simplest method is to take your KiwiSaver balance at the end of the relationship, subtract the balance from the start of the relationship and the difference is the amount attributable to the relationship. Alternatively, you can calculate the amount attributable to the relationship on a percentage basis.
To continue reading and learn about common approaches to division, what can be done if you can't afford to pay your ex-partner if payment is needed to reach an equal division, the Family Court application process and timeframes involved, click here for the full NZ Herald article.
