CONTRACTING OUT AGREEMENT

THIS CONTRACTING OUT AGREEMENT (the "Agreement") dated this ________ day of ________________, ________.

BETWEEN:

_____________________
of _________________________

- AND -

_____________________
of _________________________

BACKGROUND

1. This Agreement is made between _____________________ and _____________________ (collectively the "Parties" and individually a "Party") who presently reside in a de facto relationship, although there is no present intention to marry.
   
2. The Parties' de facto relationship began or would begin on approximately the 11th day of April, 2021.
   
3. The Parties intend to contract out of the Property (Relationships) Act 1976 (the "Act") and pursuant to section 21 of the Act, agree that, once they have entered into this Agreement, the status, ownership, and division of their property is to be determined according to this Agreement.
   
4. The Parties wish to enter into this Agreement to provide for the status, ownership, and division of property between them, including future property owned or to be acquired by either or both of them.
   
5. The Parties further wish to affix their respective rights and liabilities that may result from this relationship.
   
6. The Parties recognise the possibility of unhappy differences that may arise between them. Accordingly, the Parties desire that the distribution of any property that either or both of them may own will be governed by the terms of this Agreement and, insofar as the statutory or case law permits, intend that any statutes that may apply to them, by virtue of New Zealand legislation, will not apply to them.
   
7. Each Party has retained their own lawyer and has received independent legal advice regarding the terms of this Agreement.
   
8. The Parties acknowledge that neither is under any duress or undue influence of the other, and that they are voluntarily entering into this Agreement.
   
9. The Parties have disclosed to the satisfaction of each of them all assets and liabilities that each may have.
   

NOW THEREFORE in consideration of the upcoming contracting out agreement, and in consideration of the mutual promises and covenants contained in this Agreement, the Parties agree as follows:

1. PROPERTY
   
1. The Parties acknowledge that this Agreement will govern any determination of ownership of property that may occur in the event of the Parties separating, or upon the death of a Party.
   
2. All jointly acquired or jointly held property, however and whenever acquired, will remain the property of and be owned by both Parties and will be treated as shared property (the "Shared Property").
   
3. In the event of the Parties separating, or upon the death of a Party, all Shared Property will be deemed to be owned equally and each Party will be entitled to fifty percent (50%) of the net equity of the property, regardless of the initial or ongoing proportion of each Party's investment, unless the Parties have agreed otherwise in writing.
   
4. Except as otherwise provided in this Agreement, all property will be treated as property owned solely by either one of the Parties (the "Separate Property") except where:
   
   1. it is Shared Property; or
      
   2. there is proof of shared legal ownership.
      
5. Nothing in this Agreement will prevent or invalidate any gift, or transfer for value, from one Party to the other of present or future property.
   
6. Unless a Party can reasonably show that they solely own a piece of property, where either Party commingles jointly owned property with Separate Property, any commingled property will be presumed to be Shared Property.
   
7. DEBTS
   
7. The Parties acknowledge that this Agreement will govern any determination of responsibility of debts that may occur in the event of the Parties separating, or upon the death of a Party.
   
8. All jointly acquired or jointly held debts, however and whenever acquired, will remain the debts of and be owed by both Parties and will be treated as shared debts (the "Shared Debts").
   
9. Except as otherwise provided in this Agreement, all debts will be treated as debts owed solely by either one of the Parties (the "Separate Debts") except where:
   
   1. it is Shared Debt; or
      
   2. there is proof of shared legal responsibility.
      
10. In the event of a separation, or upon the death of a Party, all Shared Debt will be deemed to be owed equally and each Party will be financially responsible for 50% of any jointly acquired or jointly held debt, regardless of the initial or ongoing proportion of each Party's borrowed amount, unless the Parties have agreed otherwise in writing.
    
11. HOUSEHOLD EXPENSES
    
11. Each Party will pay fifty percent (50%) of the Parties’ household expenses.
    
12. The Parties’ household expenses will be paid out of a joint bank account (the “Joint Account”).
    
13. SUPPORT
    
13. The Parties agree that the investment of time or labour with respect to personal service in the property of the other, or otherwise, will be deemed to have been made gratuitously, and without expectation or right of compensation unless agreed to the contrary in writing.
    
14. It is the intention of the Parties to forever release each other from any support obligations now and in the future no matter how their circumstances may change. They will not apply now or in the future under any legislation for support. They each waive any rights they may have to proceed against the other under any law or statute for  support and rely upon the law of contract to govern in respect of this issue.
    
15. The Parties realize that their respective financial circumstances may be altered in the future by changes in their health, the cost of living, their employment, their marital status, the breakdown of their relationship, or otherwise. No such changes will give either Party the right to seek support under any legislation. It is understood by each Party that this Agreement represents a final disposition of all support issues between them.
    
16. ESTATES AND TESTAMENTARY DISPOSITION
    
16. Nothing in this Agreement will limit or affect any rights that each may acquire as a de facto partner or de facto partner in the property, assets or estate of the other de facto partner.
    
17. Nothing in this Agreement will invalidate or prevent either Party from naming the other as a beneficiary by will or other testamentary disposition.
    
18. SEVERABILITY
    
18. Should any portion of this Agreement be held by a court of law to be invalid, unenforceable, or void, such holding will not have the effect of invalidating or voiding the remainder of this Agreement, and the Parties agree that the portion so held to be invalid, unenforceable, or void, will be deemed amended, reduced in scope, or otherwise stricken only to the extent required for purposes of validity and enforcement in the jurisdiction of such holding.
    
19. INTENTION OF THE PARTIES
    
19. Notwithstanding that the Parties acknowledge and agree that their circumstances at the execution of this Agreement may change for many reasons, including but without limiting the generality of the foregoing, the passage of years, it is nonetheless their intention to be bound strictly by the terms of this Agreement at all times.
    
20. DUTY OF GOOD FAITH
    
20. This Agreement creates a fiduciary relationship between the Parties in which each Party agrees to act with the utmost of good faith and fair dealing toward the other in all aspects of this Agreement.
    
21. FURTHER DOCUMENTATION
    
21. The Parties agree to provide and execute such further documentation as may be reasonably required to give full force and effect to each term of this Agreement.
    
22. TITLE/HEADINGS
    
22. The headings of this Agreement form no part of it, and will be deemed to have been inserted for convenience only.
    
23. ENUREMENT
    
23. This Agreement will be binding upon and will enure to the benefit of the Parties, their respective heirs, executors, administrators, and assigns.
    
24. GOVERNING LAW
    
24. The laws of New Zealand will govern the interpretation of this Agreement, and the status, ownership, and division of property between the Parties wherever either or both of them may from time to time reside.
    
25. TERMINATION OR AMENDMENT
    
25. This Agreement may only be terminated or amended by the Parties in writing signed by both of them.