Financial Disclosure in a New Zealand Divorce

Why Disclosure Matters in NZ Property Division

Financial disclosure is the foundation of every property settlement in New Zealand. Before you can divide relationship property fairly, both partners need a complete, honest picture of what exists — every asset, every debt, every account.

Under the Property (Relationships) Act 1976, the equal sharing rule only works when both partners know what's being shared. If one partner hides assets or undervalues property, the entire settlement is built on false numbers. Courts take non-disclosure seriously: a settlement agreement may be set aside under Section 21J if a partner's failure to disclose significant assets contributes to serious injustice.

The PR1 Affidavit of Assets and Liabilities

If your property dispute reaches the Family Court, both parties will be required to file a PR1 Affidavit of Assets and Liabilities. This is a sworn document listing every asset and liability each partner holds, along with current values.

The PR1 form is available free from the Ministry of Justice website. It requires you to declare:

• Real property (houses, land, investment properties) with registered valuations
• Bank accounts (all accounts in your name or joint names, with current balances)
• KiwiSaver and superannuation balances
• Investments (shares, managed funds, bonds, cryptocurrency)
• Vehicles, boats, and other registered assets
• Business interests and company shares
• Debts (mortgages, personal loans, credit cards, student loans, hire purchase)
• Insurance policies with cash surrender values
• Any assets held in trusts where you are a beneficiary, settlor, or trustee

The affidavit is sworn — signing it carries the same legal weight as giving evidence under oath in court. Deliberately omitting assets or understating values can have serious legal consequences.

Disclosure for Private Agreements

Even if you're settling by private Section 21A agreement rather than going to court, full financial disclosure is essential. Your respective lawyers need to verify that both partners understand the full financial picture before certifying the agreement.

If one partner later discovers that the other concealed assets, the agreement can be challenged and potentially set aside on grounds of serious injustice. The certifying lawyers' reputations are on the line too — they won't sign off on an agreement if they suspect incomplete disclosure.

There's no formal prescribed form for disclosure in private agreements (the PR1 is a court document), but the practical requirement is the same: a comprehensive inventory of everything each partner owns and owes.

What Documents to Gather

A thorough financial disclosure requires assembling documentation across several categories:

Banking. Statements for every account (joint and sole) for at least the past three years. This includes savings accounts, term deposits, offset accounts, and any accounts at online-only providers. Look for accounts that may have been forgotten — old savings accounts, foreign currency accounts, accounts at institutions where you no longer have an active relationship.

Property. Current registered valuations for all real estate. Council CVs (rating valuations) provide a starting point but are often outdated. For settlement purposes, a valuation from a registered independent valuer is the standard.

KiwiSaver and superannuation. Request balance statements showing: the balance at the start of the relationship, the balance at the date of separation, and a breakdown of contributions (employee, employer, government) during the relationship period. Your provider can supply this.

Investments. Current statements for managed funds, share portfolios, bonds, term deposits, and any cryptocurrency holdings. Include offshore investments.

Business interests. If either partner owns or has an interest in a business, partnership, or company, financial statements and a professional business valuation may be needed. Business valuations typically require an independent accountant or valuer.

Vehicles and valuable chattels. Registration details and market valuations for cars, boats, caravans, and motorbikes. Trade Me or dealers can provide indicative values for vehicles.

Debts. Current statements for every liability — mortgage, personal loans, credit cards, student loans, hire purchase, buy-now-pay-later balances, overdrafts, and any debts owed to family members.

Trust assets. If either partner is a settlor, trustee, or beneficiary of a family trust, the trust's financial statements and asset register are relevant. Trust assets are technically owned by the trust, but the Family Court has powers under Section 44 of the PRA to claw back assets that were transferred to a trust to defeat a partner's property claims.

Consequences of Hiding Assets

Concealing assets in a New Zealand separation carries serious consequences:

• The agreement can be set aside. Under Section 21J, the Family Court can set aside an agreement if non-disclosure contributes to serious injustice.
• Serious legal consequences. A PR1 affidavit is sworn, so deliberately filing false information can expose the filer to legal consequences.
• Costs orders. Courts can order the non-disclosing partner to pay the other's legal costs for the proceedings required to uncover the hidden assets.
• Adverse inferences. If a partner is evasive or uncooperative during disclosure, the court can draw adverse inferences — assuming the undisclosed assets exist and are valuable.

Organising Your Disclosure

The difference between a disclosure process that takes weeks and one that takes months is usually organisation. Gathering documents reactively — waiting for your lawyer to ask for each one — burns billable hours. Compiling everything proactively into a structured inventory saves time and money.

The New Zealand Financial Split & Asset Division Guide includes a financial disclosure checklist and asset inventory worksheet designed for exactly this purpose. It walks through each category systematically, so nothing gets missed, and produces a document your lawyer can work from directly rather than having to reorganise your information into their own format.

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