Pre-nups and Wills: An Important Lesson from Rimmer v Wilton
Your contracting out agreement may affect what your partner can inherit when you die, but does it align with your will?
The Supreme Court recently delivered an important decision in Rimmer v Wilton [2026] NZSC 122, which is relevant to anyone who has a contracting out agreement (otherwise known as a “prenup” or section 21 agreement) and is thinking about what happens to their assets when they die.
The case considered whether a contracting out agreement could prevent a surviving partner from also claiming an entitlement under the intestacy rules – the rules that apply when someone dies without a will.
Background
David Rimmer and Carolyn Wilton were de facto partners who entered into a contracting out agreement in 2002. The agreement set out how their property would be divided and gave the surviving partner a life interest in the other partner’s share of their home.
The agreement also provided that it was a “full and final settlement of all claims” between them.
When Mr Rimmer died without a will in 2016, Ms Wilton sought to rely both on the contracting out agreement and on the intestacy rules to claim a share of his estate.
The Supreme Court ultimately found that, because of the wording of their contracting out agreement, Ms Wilton had agreed not to make further claims against Mr Rimmer’s estate. Her entitlement was therefore limited to what the agreement provided.
Why does this matter?
The decision is an important reminder that your contracting out agreement and your will need to work together.
A contracting out agreement can have consequences that extend beyond the division of property during a relationship. Depending on its wording, it may also affect what a surviving partner can claim after death.
Your circumstances may also have changed since your agreement was signed. You may have acquired new assets, changed your intended beneficiaries, had children, or simply changed your wishes about what should happen to your property.
Is it time to review your documents?
If you have a contracting out agreement, this is a good opportunity to check that it still reflects your wishes and works alongside your will. Reviewing your contracting-out agreement, will and asset ownership arrangements regularly can help ensure that your intentions are respected and reduce the risk of unintended consequences for your partner and family.
How we can help
Our team can help to review your existing arrangements, explain how your documents interact, and help identify any gaps or potential issues.
We can also assist with preparing or updating contracting out agreements and wills to ensure your wishes are clearly documented.
Disclaimer
This information is of a general nature and does not constitute legal advice. All readers should contact a law firm for specific advice.
