CONTRACTING OUT AGREEMENT

THIS CONTRACTING OUT AGREEMENT (the "Agreement") MADE ON THIS ________ day of ________________, ________

BETWEEN:

_______________________________

- AND -

_______________________________

of _________________________________________

1. BACKGROUND
   
1. This Agreement is made between _______________________________ and _______________________________ (collectively the "Parties" and individually a "Party") who are contemplating marriage or civil union each to the other.
   
2. The Parties intend to contract out of the Property (Relationships) Act 1976 (the "Act") and pursuant to section 21 of the Act agree that if, after they enter into this Agreement, they enter into a marriage or civil union the status, ownership, and division of their property is to be determined according to this Agreement.
   
3. 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.
   
4. The Parties further wish to affix their respective rights and liabilities that may result from this relationship.
   
5. 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, will not apply to them.
   
6. The Parties acknowledge that they have been provided with a reasonable period of time to review this Agreement.
   
7. The Parties also acknowledge that they have had the opportunity to retain their own lawyer and to receive independent legal advice regarding the terms of this Agreement.
   
8. Each Party agrees and affirms THAT:
   
   1. The Parties did execute the Agreement voluntarily;
      
   2. This Agreement was not unconscionable when it was executed;
      
   3. Prior to execution of the Agreement, both Parties were provided a fair and reasonable disclosure of the property or financial obligations of the other Party;
      
   4. They have, or reasonably could have had, an adequate knowledge of the property or financial obligations of the other Party; and
      
   5. They entered into this Agreement freely and under no duress or undue influence on their decision by the other Party.
      
9. The Parties acknowledge that this Agreement will continue upon termination of marriage or civil union whether by death, divorce, or otherwise.
   

NOW THEREFORE in consideration of the upcoming marriage or civil union, 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. 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"), with the property as is listed in the attached Schedules "A1" and "A2" considered Separate Property, except where:
   
   1. it is Shared Property; or
      
   2. there is proof of shared legal ownership.
      
3. 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.
   
4. 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.
   
5. DEBTS
   
5. 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.
   
6. 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").
   
7. 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"), with the debts listed in the attached Schedules "B1" and "B2" considered Separate Debts, except where:
   
   1. it is Shared Debt; or
      
   2. there is proof of shared legal responsibility.
      
8. SUPPORT
   
8. 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.
   
9. It is the intention of the Parties to forever release each other from any alimony or 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 Federal or Territorial legislation for support. They each waive any rights they may have to proceed against the other under any law or statute for payments of alimony or support and rely upon the law of contract to govern in respect of this issue.
   
10. The Parties realise 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 maintenance and support issues between them.
    
11. ESTATES AND TESTAMENTARY DISPOSITION
    
11. Except as otherwise provided in this Agreement, the Parties acknowledge that each has the absolute right to dispose of their estate by will without leaving any portion to the other, or to the heirs, executors, administrators, or assigns of the other.
    
12. Nothing in this Agreement will invalidate or prevent either Party from naming the other as a beneficiary by will or other testamentary disposition.
    
13. Except as otherwise provided in this Agreement, the Parties waive and release the other from any and all rights of every kind, nature, and description that each may acquire as spouse or surviving spouse in the property, assets, or estate of the other.
    
14. SEVERABILITY
    
14. 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.
    
15. INTENTION OF THE PARTIES
    
15. 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.
    
16. DUTY OF GOOD FAITH
    
16. 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.
    
17. FURTHER DOCUMENTATION
    
17. 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.
    
18. TITLE/HEADINGS
    
18. The headings of this Agreement form no part of it, and will be deemed to have been inserted for convenience only.
    
19. ENUREMENT
    
19. This Agreement will be binding upon and will enure to the benefit of the Parties, their respective heirs, executors, administrators, and assigns.
    
20. GOVERNING LAW
    
20. 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.
    
21. TERMINATION OR AMENDMENT
    
21. This Agreement may only be terminated or amended by the Parties in writing signed by both of them.
    
22. ENTIRE AGREEMENT
    
22. The Agreement constitutes the entire agreement and understanding between the Parties to this Agreement and supersedes all prior communications, contracts, or agreements between these Parties with respect to the subject matter addressed in this Agreement, whether oral or written.