New Zealand trust property that was not relationship property

Background

Property in New Zealand was held through a trust, and the client expected it to count as relationship property and be divided.

What was done

The trust deed was reviewed, and the analysis distinguished trust property from relationship property under New Zealand law, including who controlled the trust and how it had been administered.

Outcome

The client's position was reset around what was actually reachable, and a settlement was negotiated on that basis.

Why this pattern recurs

A trust is usually created precisely to take assets outside the divisibility rules. Treating trust assets as directly owned leads to a claim that cannot be sustained.

If your situation looks similar

Send the facts in one message: where the marriage was registered, where each party lives now, where any children are, and where the assets are held. That is usually enough to say whether a China route exists, and there is no charge for that first review.

Points to take away

• A trust is usually created precisely to take assets outside the divisibility rules. Treating trust assets as directly owned leads to a claim that cannot be sustained.
• The client's position was reset around what was actually reachable, and a settlement was negotiated on that basis.