For many people, a business is the most valuable thing they own — and often the most complicated thing to deal with when a relationship ends.
Whether you built it before you met your partner, grew it together, or started it somewhere in between, separation raises an urgent question: what happens to my business now?
The honest answer is: it depends. But there are clear legal principles that apply, and understanding them early can make an enormous difference to the outcome. Andy Bell and the relationship property team at Lane Neave in Wellington and Auckland advise business owners through exactly these situations — here is what you need to know.
Is my business relationship property?
In New Zealand, the Property (Relationships) Act 1976 (PRA) sets out what counts as relationship property — the pool of assets divided between partners at the end of a qualifying relationship (marriage, civil union, or de facto relationship of three or more years).
The default rule under the PRA is an equal (50/50) split of all relationship property.
A business started during the relationship is generally relationship property in its entirety. A business started before the relationship is more nuanced. The starting value may be separate property, but whether any increase in value becomes relationship property depends on a number of factors — including how the growth was generated, whether relationship property funds were applied to the business, and the respective contributions of each partner, both direct and indirect. There is no single rule; it is a fact-specific analysis that often requires careful legal and accounting advice.
How is the business valued?
Business valuation in separation proceedings typically involves an independent accountant or business valuator, considering factors including:
- Net assets and liabilities
- Revenue and profitability
- Goodwill (personal versus business)
- Future earning potential
- Comparable market transactions
The methodology used — and who appoints the valuator — can significantly affect the outcome. Both parties often engage their own experts, and the gap between competing valuations can be substantial. Getting the right legal advice at this stage is critical.
What are the options?
Once the relationship property component of the business is established, you broadly have three paths:
1. Buy out your partner’s share — the most common outcome. You keep the business and pay your partner their share, either from the business itself or by offsetting other assets such as the family home or savings.
2. Sell the business and divide the proceeds — sometimes unavoidable where neither party can finance a buyout and there are limited other assets to offset against.
3. Continue co-owning — rarely workable in practice. It can bridge a short-term gap while a longer-term arrangement is negotiated, but it is seldom a sustainable solution.
What if my business is held in a trust?
Holding a business through a family trust does not automatically protect it from a relationship property claim. Courts have broad powers under the PRA and the Family Proceedings Act 1980 to look behind trust structures where assets have been placed there in a way that defeats a partner’s legitimate claims.
If you believe your trust structure provides protection, it is worth having that assumption tested by a specialist relationship property lawyer sooner rather than later.
Can I protect my business before it becomes an issue?
A Contracting Out Agreement (commonly known as a prenuptial or “prenup” agreement) allows couples to agree in advance on how specific assets — including a business — will be treated in the event of separation. These agreements can ring-fence a business as separate property or set out a valuation methodology in advance.
Both parties must have independent legal advice for the agreement to be enforceable. Done properly, a Contracting Out Agreement provides real certainty and can prevent years of expensive dispute. They are also available to couples already in a relationship — a postnuptial agreement can achieve similar protection at any stage.
Act early — the stakes are high
One of the most common mistakes business owners make is waiting too long to get advice. The decisions made in the early stages of a separation — what you say, what you agree to informally, how you handle business finances in the interim — can all have legal consequences down the track.
A 30-minute conversation with Andy Bell or one of the Lane Neave relationship property team can help you understand where you stand before you commit to anything.
Frequently asked questions
Does my partner automatically get half my business if we separate in New Zealand?
Not automatically. Whether your partner is entitled to a share depends on when the business was started, how it grew, and what contributions each of you made — directly or indirectly. The 50/50 default under the PRA applies to the relationship property component, which needs to be carefully identified.
What if I started my business before we got together?
The starting value of the business may be treated as your separate property. However, whether increases in value over the relationship become relationship property is not straightforward — it depends on a range of factors including how the growth was achieved and what role each partner played. This is one of the more contested areas of relationship property law.
How do I find a relationship property lawyer in Wellington or Auckland who handles business assets?
Andy Bell is a Partner at Lane Neave, recognised as a Recommended Lawyer in the Legal 500 Asia Pacific, and advises on relationship property matters — including business asset disputes — for clients in Wellington and Auckland. Gabrielle Thompson handles relationship property matters from the Auckland office.
Can a prenuptial agreement protect my business?
Yes. A Contracting Out Agreement can ring-fence a business as separate property or agree in advance on how it would be valued. Both parties need independent legal advice for the agreement to be enforceable.
What happens if we can’t agree?
If agreement cannot be reached through negotiation or mediation, either party can apply to the Family Court. The court has broad powers to determine how relationship property — including business interests — is divided. A negotiated settlement is almost always faster, cheaper, and more certain than litigation.
Speak to our team about your situation.
Andy Bell, Partner at Lane Neave, advises clients in Wellington and Auckland on relationship property matters, including business asset disputes. Gabrielle Thompson leads relationship property work from the Auckland office, and Tanya Lavan handles complex family law matters in Wellington.
Book a free consultation — no obligation, and entirely confidential.
Andy Bell is a Partner at Lane Neave and a Recommended Lawyer in the 2026 Legal 500 Asia Pacific. He has over 20 years’ experience in New Zealand law, specialising in relationship property and employment law. Andy advises clients across Wellington, Auckland, and New Zealand on relationship property matters involving business assets, trusts, and high-value settlements. View Andy’s profile →
Andy Bell
Andy Bell is a seasoned lawyer with over 20 years of experience in New Zealand law, known for his exceptional representation and nuanced negotiation skills. Andy Bell is a skilled advocate who balances tenacity and diplomacy to achieve the best possible outcomes for his clients.