We’ve been married for 9 years and are separating. My husband wants to keep the house and buy me out. How do we work out a fair value and what happens with the mortgage?

General information from Lawmateanz

In New Zealand, the family home is usually shared equally after a marriage of three years or more, under the Property (Relationships) Act 1976. A buyout is a common way to divide it.

Value: many couples agree on one registered valuer, or each get a valuation and settle somewhere between. A real estate appraisal is cheaper but less reliable if you disagree.

Buyout figure: the starting point is usually the home's value minus the mortgage (the equity), divided by two. That figure is often balanced against other relationship property and debts, such as KiwiSaver built up during the marriage, cars, savings and credit cards, so the overall split is equal.

Mortgage: your husband would normally need the bank to approve him taking over the mortgage alone, so you're released from it. Until the bank releases you, you can still be liable for the loan.

To make the agreement binding, it must be in writing and you each need independent legal advice, with your lawyers certifying it. If you can't agree, the Family Court can decide, generally within 12 months of a dissolution (divorce) order.

Written by Lawmateanz, not by a lawyer. General information only, not legal advice about your situation. For advice about your own matter, talk to a lawyer.

Lawyers listed on Lawmateanz can answer this question. If you asked it, we'll email you as soon as it's answered.

Are you a lawyer? Answer this question · List free on Lawmateanz

General information only. Answers are written by independent lawyers based only on what's in the question. They aren't legal advice about your situation and don't create a lawyer–client relationship. For advice about your own matter, talk to a lawyer directly.