Dividing assets fairly when you’re going through separation and divorce

Everyone wants a fair outcome, but it’s not always clear 

Especially here in Aotearoa, fairness is important. But when stakes are high, such as when your relationship ends, many things can seem fair when financially they are not.  

Strong emotions influence what seems fair – even financially uneven outcomes can seem fair when we get other things that we value instead. It’s easy to lose sight of the future and how these decisions will affect our wellbeing in retirement, for example.  

Not only that – our own perspective can change as to what’s fair, too. After going through the separation process, a third of men and women we surveyed perceived the outcome as unfair. 

What to do? Getting supportive, professional financial advice can make a huge difference to your future. 

The difference between equal and equitable 

There’s the saying, “Equality is giving everyone the same pair of shoes; equity is giving everyone a pair of shoes that fits.” 

Seeking professional financial advice isn't a sign of distrust  

It’s important to get the right support for you. Separating and dividing up assets is an exhausting process – going through it can be financially, emotionally and mentally draining. 

It’s natural to want to resolve everything as quickly as possible and find closure at all costs. But you may find that you end up with an outcome that seems unfair further down the track. 

You may also feel like avoiding a money conflict as a gesture of goodwill, but this can also lead to unfair outcomes if not considered carefully. 

So getting advice on important decisions ensures you are not overly driven by emotions. 

Make sure to include KiwiSaver in your relationship property 

Although like many, you may think of KiwiSaver as linked to your and your partner’s personal work, it’s important to include your KiwiSaver accounts when you are dividing things up fairly. People tend to overlook this, but KiwiSaver should be treated the same as any other investments or assets and be part of the conversation. 

Remember that KiwiSaver is an investment, an appreciating asset that is growing in value over time. 

When you are dividing up KiwiSaver, investment units are being sold at their value on that given day. If one partner gets paid out from KiwiSaver, it may not end up being invested and growing for the future. It may be simply put into something (like a car) that loses value. This is important to consider. 

The difference between assets that grow in value... and those that don’t 

Taking everything you own and dividing it up as if it were all worth the same now and in the future? Doing this can wind you up in very different financial positions in the long run. 

Here’s where to go for help 

• Community Law Centres for free legal advice 
• Citizens Advice Bureau for information, advice and support 

• EAP – If your employer is signed up to an employee assistance programme, you can talk to a financial adviser or independent financial coach for free. Call 0800 327 669.