The Ex-Files: Transtasman divorce: How do we split our assets in NZ and Australia?
Question: My husband and I are separating after 20 years of marriage. We are originally from Australia but have lived in Auckland for the past 10 years. We have assets in both countries.
In Australia, we own three rental properties, one of them jointly with my sister, along with bank accounts. All three properties are mortgage-free.
In New Zealand, we own our family home in Auckland, which has a mortgage, and we have KiwiSaver and bank accounts.
We are separating amicably and have agreed to an equal division overall. My husband would like to purchase my share of the family home in Auckland, and I would like to purchase his share of the Australian rental we co-own with my sister. The other two Australian properties are to be sold. Can you help us divide our assets? We also want to have our marriage dissolved.
Answer: Because your assets are in two countries, your situation creates jurisdictional issues. There are limits as to which overseas property the New Zealand Family Court can deal with. The court has jurisdiction to deal with “moveable” but not “immovable” assets. Put simply, immovable assets are real estate, and moveable assets include bank accounts, shares, and superannuation.
In Australia, the Federal Circuit and Family Court of Australia has jurisdiction over all family assets, regardless of where they are located. However, in practice difficulties would likely arise in enforcing any agreement or court order as it related to assets outside of Australia.
You are therefore best to engage lawyers in both New Zealand and Australia to assist you to prepare mirror agreements to finalise the division of your relationship property.
A New Zealand lawyer can assist you to prepare a separation agreement, which is a document recording the division of assets after separation.
To discover how you can proceed with separation arrangements in Australia, learn the steps you need to take to finalise separation arrangements in both countries and apply for a divorce, read the full NZ Herald Ex-Files article here.
