Relationship Property Valuations - Actuarial Impact
Understanding Relationship Property Valuations in New Zealand: Why Actuarial Independence Matters
When a relationship ends, dividing property fairly can be complex. Whether you're entering negotiations or preparing for court, having a clear, independent view of what assets are worth is critical. That’s where a relationship property valuation comes in—and where actuaries provide distinct value.
At EriksensGlobal, our team of actuaries specialise in relationship property valuations. We bring a fact-based, independent lens to what can often be an emotional and financially significant process.
What Is Relationship Property?
Under the Property (Relationships) Act 1976, "relationship property" encompasses assets and liabilities acquired during the relationship. This typically includes:
Family Home and Chattels: Regardless of whose name they're in, if used for the couple's common benefit, they're considered Relationship Property.
Income and Savings: Earnings made during the relationship and any savings or investments made from income as seen as Relationship Property.
KiwiSaver (Superannuation schemes) and Insurance Policies: Contributions to KiwiSaver or policies that accumulate overtime (during the relationship period) are seen as Relationship Property.
Jointly Owned Property: Any assets owned together, irrespective of when they were acquired.
Property Acquired Together: If a property was purchased and intended for benefit both parties, it may be classified as Relationship Property.
When Should You Obtain a Relationship Property Valuation?
Engaging an actuary for a relationship property valuation is beneficial in several scenarios:
Negotiations: An independent valuation provides a factual basis, facilitating fair discussions.
Legal Proceedings: Courts often rely on impartial valuations to make informed decisions.
Complex Asset Division: When assets like businesses or trusts are involved, specialised valuation ensures equitable distribution.
Assets Commonly Valued in Relationship Property Assessments
Real Estate: While registered property valuers assess the market value, actuaries consider factors like council valuations and market trends to provide a comprehensive view.
Economic Disparity: If one partner's income or career progression was affected due to relationship roles (e.g. childcare), actuaries quantify this disparity to support claims for unequal division under section 15 of the Property (Relationships) Act.
Life Interests in Trusts and Estates: Rights to reside in a property or receive income from a trust are valued to determine their impact on the overall property division.
KiwiSaver and Superannuation: Contributions made during the relationship are considered relationship property. Actuaries assess these, factoring in any economic disparity claims.
Share Portfolios: Valued based on market data often at the time of separation, ensuring accurate representation of their worth.
Businesses and Professional Practices: Valuing a business involves assessing tangible assets, goodwill, and future earning potential. Actuaries can use methodologies like the "super profits" approach to determine value.
Debts and Liabilities: Non-personal debts incurred during the relationship are included in the property division. Actuaries ensure these are accurately accounted for in the valuation.
Why Choose an Actuary for Valuation?
Actuaries bring a unique skill set to relationship property valuations:
Independence: Providing impartial assessments trusted by courts.
Expertise: Skilled in evaluating complex financial instruments and scenarios.
Holistic Analysis: Considering all aspects of the relationship's financial landscape to deliver a comprehensive valuation.
Navigating the division of relationship property requires clarity and precision. Engaging an actuary ensures an independent, thorough valuation to help facilitate fair outcomes in negotiations or court proceedings.
For expert assistance in relationship property valuations, reach out to the team.