Wellington Lawyer: Is Your Family Home Defined as a Homestead? Understanding Different Relationship

WELLINGTON, New Zealand - July 25, 2024 - PRLog -- When it comes to relationship property division in New Zealand, the general rule is that each spouse or partner is entitled to an equal share of the family home, provided the relationship has lasted more than three years. However, this rule changes if the family home is defined as a homestead.

What is a Homestead?

A homestead is a family home where the house is situated on an unsubdivided piece of land that is not primarily used by the household. In contrast, a family home includes the main residence and any adjoining land used by the household, such as a backyard.

How is a Homestead Divided?

When a family home is classified as a homestead, the division of property differs from the standard rule. In this case, each spouse or partner is entitled to an equal share of the equity in the homestead. If one spouse or partner does not have a beneficial interest in the land where the homestead is located, they will be deemed to hold a beneficial interest until their share of the equity is paid out.

Determining the Value of a Homestead

The value of a homestead for the purposes of property division is determined by assessing the capital value of the land on which the homestead is located. This value is then apportioned between the homestead and the remainder of the land, often requiring a registered valuation to ascertain the exact value.

Seeking Legal Advice

If your relationship property division includes a homestead, it is crucial to seek independent legal advice to understand how the property will be divided. Legal professionals can provide the guidance needed to navigate these complex rules and ensure a fair division of property.

Fixed-Price Consultations

Leading law firms offer a range of fixed-price Initial Consultations to help clients quickly understand their options. At Core Legal, our experienced team is ready to answer your questions and guide you through the process, ensuring you are on the right track.

For more information or to schedule a consultation, contact Core Legal today. https://www.corelegal.co.nz