October 2017, Wellington, New Zealand | STUDY PAPER 22 October 2017, Wellington, New Zealand | STUDY PAPER 22 RELATIONSHIPS AND FAMILIES IN CONTEMPORARY NEW ZEALAND HE HONONGA TANGATA, HE HONONGA WHĀNAU I AOTEAROA O NĀIANEI STUDY PAPER 2 3 RELATIONSHIPS AND FAMILIES IN CONTEMPORARY NEW ZEALAND HE HONONGA TANGATA, HE HONONGA WHĀNAU I AOTEAROA O NĀIANEI STUDY PAPER 4 The Law Commission is an independent, publicly funded, central advisory body established by statute to undertake the systematic review, reform and development of the law of New Zealand. Its purpose is to help achieve law that is just, principled, and accessible, and that reflects the heritage and aspirations of the peoples of New Zealand. The Commissioners are: Douglas White – President Donna Buckingham Belinda Clark QSO Helen McQueen The General Manager of the Law Commission is Jasmine Tietjens The office of the Law Commission is at Level 19, 171 Featherston Street, Wellington Postal address: PO Box 2590, Wellington 6140, New Zealand Document Exchange Number: sp 23534 Telephone: (04) 473-3453, Facsimile: (04) 471-0959 Email: [email protected] Internet: www.lawcom.govt.nz A catalogue record for this title is available from the National Library of New Zealand. ISBN: 978-1-877569-83-8 (Online) ISSN: 1177-7125 (Online) This title may be cited as NZLC SP22 This title is also available on the Internet at the Law Commission’s website: www.lawcom.govt.nz Copyright © 2017 New Zealand Law Commission. This work is licensed under the Creative Commons Attribution 4.0 International licence. In essence, you are free to copy, distribute and adapt the work, as long as you attribute the work to the Law Commission and abide by other licence terms. To view a copy of this licence, visit https://creativecommons.org/licenses/by/4.0/. 5 Foreword Alongside our Issues Paper, Dividing Relationship Property – Time for Change? Te mātatoha rawa tokorau – Kua eke te wā?, the Law Commission is publishing this Study Paper. It was immediately apparent as we began our review of the law governing the division of property when relationships end (the Property (Relationships) Act 1976) that we needed to understand how New Zealand has changed over the last 40 years. Social legislation such as the Property (Relationships) Act cannot be reviewed without understanding its context. Contemporary political decision-making places considerable emphasis on evidence-based policy making. This Study Paper describes the significant demographic changes which have taken place in New Zealand since the Property (Relationships) Act was first enacted and sets out what we know about the way in which relationships and families are formed, how they operate and what happens when relationships end. You may be surprised to learn that 46 per cent of New Zealand children were born outside marriage in 2016 and that in the 2013 Census, 22 per cent of all couples reported they were in a de facto relationship. This has occurred against a background of ongoing demographic change in New Zealand, including our ethnic diversity and the age of the population. Knowing such facts, together with understanding likely future trends, informs our understanding of the society we live in. The limitations of the sources of our information mean that the Study Paper also highlights the gaps in our knowledge. Current official statistics are still catching up with the wide variety of living arrangements which exist in New Zealand today and there is a recognised problem with an absence of family-specific data and research in New Zealand. For example, little is known about de facto relationships, re- partnering and stepfamilies, although the limited data available indicates that all three are becoming more common. We hope that the Study Paper increases your knowledge about contemporary New Zealand and sets the scene for your consideration of the matters discussed in our Issues Paper. Ngā mihi nui Douglas White President 6 Glossary Terms in this Study Paper reflect the statistical definitions used in the collection of the data. Common terms and abbreviations are described below. The Christchurch Study refers to the Christchurch Health and Development Study, a longitudinal study following a cohort of 1,265 children born in the Christchurch urban region during 1977. Civil union means a civil union entered into by two people under the Civil Union Act 2004. Couple means two people who are partnered with each other. Couple with children means a family of a couple and one or more dependent or adult children. It includes couples who are opposite-sex or same-sex, and who are married, in a civil union or in a de facto relationship. It includes families where the couple are the biological or adoptive parents of the children and stepfamilies. De facto relationship means two people who usually live together as a couple in a relationship in the nature of marriage. This is different to the definition of de facto relationship in section 2D of the Property (Relationships) Act 1976. Dependent child, unless otherwise stated, means a child under the age of 18 and, if aged 15 to 17, is not in full time employment. The Dunedin Study refers to the Dunedin Multidisciplinary Health and Development Study, a longitudinal study following a cohort of 1,037 children born in Dunedin between 1972 and 1973. Equivalised incomes have been adjusted for household size, taking into account the greater economic needs and economies of scale of larger households, so that the relative wellbeing of different sized households can be compared. Family means two or more people living in the same household, who are either a couple, with or without children, or a single parent with children. Related people who are not in a couple or parent-child relationship are excluded from this definition. Children who live in different households, and children who live in the same household but who also have a partner or children of their own living with them, are also excluded. Children includes dependent and adult children. Family home means the dwelling house in which the family or household lives. The Growing Up in New Zealand Study is a longitudinal study following approximately 7,000 children born during 2009 and 2010 in the greater Auckland and Waikato regions. A Household can consist of one person living alone, or two or more people or families residing together in a private dwelling and sharing facilities. Issues Paper means the Law Commission’s Issues Paper published alongside this Study Paper, Dividing Relationship Property – Time for Change? Te mātatoha rawa tokorau – Kua eke te wā? (NZLC IP41, 2017). 7 LAT means “living apart together”, and refers to two people who are in an intimate relationship but are not married or in a de facto relationship. See Chapter 1. Marriage means a legally registered relationship entered into by two people according to the laws and customs of the country in which they got married. In New Zealand, it refers to marriages solemnised under the Marriage Act 1955, and has included marriages between same-sex couples since 2013. Median means the midpoint of observed values, with half of the items of data below it and half above it. It is different to the average, or mean, which refers to the total divided by the number of data points. The median is used when the average or mean might be distorted by a small number of data points at the highest or lowest ends of the distribution. The NZW:FEE Survey refers to the 1995 New Zealand Women: Family, Employment and Education Survey of 3,017 women born 1936–1975 and covering the period 1950–1995, investigating the dynamic processes of family formation and change in New Zealand. See Chapter 1. OECD means the Organisation for Economic Co-operation and Development. There are 35 member countries, including Australia, Canada, New Zealand, the United Kingdom and the United States. Partner means a person to whom another person is married, in a civil union with, or in a de facto relationship with. For statistical purposes a person can only be partnered with one other person. Single parent family means a family of one adult and one or more dependent or adult children. It includes single parent families that live in households with others. SoFIE means the Survey of Family, Income and Employment, a longitudinal sample survey of 22,000 New Zealanders conducted across eight years or “waves”, from 2003 to 2010. See Chapter 5. Stepfamily means a couple with children where at least one of the adults is not the biological or adoptive parent of one or more of the children. Stepfamilies include couples who are married, in a civil union or in a de facto relationship. Stepfamilies also include blended families, which is a stepfamily where, in addition to stepchildren, at least one child is the biological or adopted child of both partners. Superu means the Social Policy Evaluation and Research Unit, formerly the Families Commission. Whānau means a family group including nuclear or extended family. See Introduction. Workforce participation rate means the proportion of working-aged people (15–64 years) who are employed, or unemployed and actively seeking employment. 8 Contents Glossary ..............................................................................................................................6 Introduction.........................................................................................................................9 Chapter 1 Changing patterns in relationship formation.................................................14 Chapter 2 Having children in New Zealand .....................................................................22 Chapter 3 Changing patterns in relationship separation ..............................................25 Chapter 4 Re-partnering and stepfamilies ......................................................................30 Chapter 5 Wider patterns of change in the family and household ................................33 Chapter 6 Sharing the work..............................................................................................39 Chapter 7 Families’ financial wellbeing...........................................................................46 Chapter 8 What happens when partners separate? .......................................................54 Chapter 9 Looking to the future......................................................................................65 9 Introduction The Law Commission is currently reviewing the Property (Relationships) Act 1976. This Act sets out rules of property division that apply when partners separate or when one of them dies. These rules apply to marriages, civil unions and de facto relationships longer than three years. In order to understand whether the Property (Relationships) Act remains appropriate 40 years on, we need to first understand how relationships and families are formed and structured, how they function and what happens when relationships end in contemporary New Zealand. This Study Paper provides an overview of what we know about relationships and families in contemporary New Zealand, drawing on official statistics and other available information. We address key life events including the formation of relationships, having and raising children, separation and re-partnering, working, buying a home and saving for and living in retirement. This Study Paper is published alongside the Law Commission’s Issues Paper, Dividing Relationship Property – Time for Change? Te mātatoha rawa tokorau – Kua eke te wā? New Zealand has undergone significant change in 40 years New Zealand has undergone significant demographic, social and economic change in the last 40 years. These changes both reflect and influence changing social norms and attitudes on issues such as living together before marriage (or not marrying at all), separation, having and raising children outside marriage and same-sex relationships. New Zealand is much more ethnically diverse than it was in the 1970s. The Māori, Pacific and Asian populations have more than doubled since 1976, while the proportion of people who identify as European is in decline (from approximately 88% of the total population in 1976, to 74% in 2013).1 New Zealanders are also increasingly identifying with more than one ethnicity, as more relationships cross ethnic and cultural divides.2 In 2013, children were ten times more likely to identify with more than one ethnic group compared to older New Zealanders (22.8% of children aged under 15 compared with 2.6% of adults aged 65 and over).3 The New Zealand population is ageing, although at different rates, both ethnically and regionally. The European population is on average significantly older than the other major ethnic groups. In 2013, the median age of people identifying as European was 41 years, compared to 24 years for Māori, 22 years for Pacific peoples, and 31 years for people identifying as Asian.4 Population ageing reflects the combined effect of people having fewer children and people living longer. The impact is accentuated by the large number of people born between 1950 and the early 1970s who are now moving into the older ages.5 As New Zealand’s population ages, more people will be entering retirement in the near future. The proportion of the population aged 65 and over is projected to increase from 15% in 2016, to 20–22% by 2032.6 Religious identity in New Zealand is also changing. Fewer people identify as Christian (49% of all people who stated their religious affiliation in 2013, down from 56% in 2006),7 while almost half of the population report they have no religion (42% in 2013, up from 35% in 2006).8 In contrast, more people are identifying with the Sikh religion, Hinduism, Muslim and Islam, although these are still proportionately small groups.9 10 These changes have all contributed to major shifts in how relationships form, change and end. The result is that relationships, families and households are increasingly diverse and complex. Our information sources This Study Paper draws together information about how relationships and families in New Zealand are formed and structured, how they function and what happens when relationships end. Most of the information presented here is sourced from Statistics New Zealand, the country’s official source of statistical information. This includes official birth, death, marriage and divorce statistics, the five-yearly Census of Population and Dwellings (census),10 and results from the regular Household Economic Survey, Household Labour Force Survey and General Social Survey. We also draw on other key surveys and research. This includes recent longitudinal research into the economic consequences of separation using the “Working for Families dataset” (see Chapter 8) and the 1995 New Zealand Women: Family, Employment and Education Survey (NZW: FEE), which investigated family formation and change between 1950 and 1995 (see Chapter 1). We look at results from several longitudinal studies of different groups (cohorts) of New Zealanders, which measure changes over time in participants’ lives. The Dunedin Multidisciplinary Health and Development Study is the longest running study, and follows a cohort of 1,037 children born in Dunedin between 1972 and 1973.The Christchurch Health and Development Study follows a cohort of 1,265 children born in the Christchurch urban region during 1977. The Growing Up in New Zealand Study is the youngest longitudinal study, and currently follows approximately 7,000 children born during 2009 and 2010 in the greater Auckland and Waikato regions. We also refer to secondary analysis of official statistics where relevant, including reports published by the Social Policy Evaluation and Research Unit (Superu, formerly the Families Commission) and Statistics New Zealand, as well as academic literature published by demographers and other experts. Terminology Our terminology in this Study Paper reflects the statistical definitions used in the collection of the data. Key terms are often given a specific meaning when information is collected, and we need to adopt the same definitions to ensure accurate representation of the data. Sometimes this means the terms we use in this Study Paper are different, or have a different meaning, to terms used in the Issues Paper. The statistical definition of “de facto relationship”, for example, means two people who usually reside together as a couple in a relationship in the nature of marriage or civil union. This is different to the definition of de facto relationship in the Property (Relationships) Act.11 A “family”, for statistical purposes, is based on the traditional family nucleus. It refers to two or more people living in the same household, who are either a couple, with or without children, or a single parent with children. Related people who are not in a couple or parent-child relationship (for example, adult siblings) are therefore excluded from this definition. Children who live in different households, or adult children who have a partner or children of their own living in the same household, are also excluded.12 11 One consequence of this definition is that people who live alone are not deemed to be in a “family” for statistical purposes, even though they will very likely be part of a family or whānau living across different households. This includes adults who may have children living with them only for some of the time, as children are deemed to live only in the household where they spend most of their time or, in the case of equal shared care arrangements, wherever they are staying on the night the statistical information was collected (see Chapter XX). These and other key terms are defined in the Glossary. The limitations of our information sources The scope of this Study Paper is limited by the nature of information collected in New Zealand. Unlike Australia and many other developed countries, New Zealand does not routinely collect information with the specific purpose of investigating family characteristics and transitions.13 There is also little information available about underlying changes in values, attitudes and social norms, which are less visible in official statistics and demographic data. The information that is collected on families in New Zealand is generally household-based, which assumes all members of a family live in the same household, and that people only live in one household.14 This is problematic because, as Superu notes, families are diverse and dynamic, households change over time, and patterns of co-residence do not necessarily reflect family connectedness.15 As a result, current official statistics do not sufficiently cover the wide variety of living arrangements that exist in New Zealand today.16 These limitations mean that little information is available about the rate of separation or the prevalence of re-partnering, shared care arrangements (children living in more than one household), stepfamilies, couples who live apart and extended family households, although all are likely becoming increasingly common.17 There is also a lack of longitudinal data about relationships and families in New Zealand, which is required to identify family transitions and determine length and frequency of different relationship and family states.18 The last key study (the NZW:FEE Survey) was undertaken in 1995. This is a particular problem for identifying de facto relationships, because, unlike marriages and civil unions which are registered, there is no recorded start or end date for de facto relationships. Some de facto relationships may even overlap with marriages or civil unions that have not yet been oficially dissolved. Current data does not tell us much about the formation and dissolution of these relationships or the children living in them.19 Superu has also identified that the household- based definition of “family” used for statistical purposes is problematic when describing culturally diverse families.20 Families operate in different ways based on a diverse platform of cultural influences.21 While “western” cultures tend to place greater emphasis on the wants and needs of the individual (individualistic cultural values), and on the independence of individual family members (independent orientation), non-western cultures tend to focus more on the wants and needs of the group (collectivistic cultural values), and relationships and obligations between family members (interdependent orientation).22 There are differences between cultures as to who is considered “family” and how family functions are interpreted.23 In western cultures, the traditional form of family is the “nuclear family”.24 In other non-western cultures, including Asian and Pacific cultures, the extended family is considered to be just as 12 fundamental and important as the nuclear family, in a way that is very similar to whānau for Māori.25 In these non-western cultures family relationships may extend well beyond the household, with ties to the broader ethnic and religious community, or even to other countries.26 The absence of family-specific data and research in New Zealand, particularly compared to other developed countries, is a recognised problem, directly impacting on the ability to analyse most aspects of family life and inform public policy in this area.27 Identifying Whānau Whānau are the cornerstone of Māori society.28 While there is no universal or generic way of defining whānau, there is broad consensus that genealogical relationships form the basis of whānau, and that these relationships are intergenerational, shaped by context, and given meaning through roles and responsibilities.29 Whānau is distinct from the concepts of family and household used in the collection of statistical information in New Zealand. As a result, there is a substantial gap in the evidence base relating to whānau.30 Te Kupenga, the first Māori Social Survey carried out by Statistics New Zealand in 2013, sought to address this gap and to better understand whānau in a way that reflects Māori values. Te Kupenga re-affirmed the pre-eminence of whakapapa relationships as the foundation of whānau, with 99% of respondents thinking of their whānau in terms of genealogical relationships.31 However the breadth of those relationships varies greatly.32 Just over 40% of respondents reported that their whānau only comprised of immediate family members (parents, partner/spouse, brothers, sisters, in- laws and children),33 while 15% of respondents reported that their whānau also included grandparents and grandchildren, but not extended whānau or friends.34 A further 32% of respondents stated that their whānau included aunts, uncles, cousins, nephews, nieces and/or other in-laws, but stopped short of including close friends.35 Finally, just under 13% of respondents included close friends and others in their expressions of whānau.36 A person’s perception of whānau was also likely to change over his or her lifetime, and in response to changes in locality, networks and whānau composition.37 Superu’s analysis of Te Kupenga identified that a respondent’s household-based family type had no bearing on how they described who belonged to their whānau.38 This, Superu notes, is significant as it suggests that, for Māori, household-based measures of family are a “very poor proxy for the more complex set of relationships that exist within whānau”.39 It also suggests that the focus on the household- based family as the unit of analysis in research “may be generating knowledge and policy responses that have limited relevance for whānau Māori”.40 This limits what, if anything, the official statistics and information presented in this paper can tell us about the Māori worldview of whānau, and how this influences the formation and functioning of intimate relationships for Māori. Measuring ethnicity Throughout this paper we identify where there are divergences in relationship and family trends across different ethnicities. Due to the way this information has been collected by Statistics New Zealand in the past, we limit our consideration to differences across the four largest pan-ethnic groups in New Zealand: European, Māori, Pacific peoples and Asian. However, it is important to note that these are far from homogeneous groups, particularly the 13 Pacific peoples and Asian groups.41 Further, the European ethnic group includes “New Zealand European” but also includes people of other European ethnicities (comprising approximately 240,000 people in 2013).42 We also note the next largest pan-ethnic grouping (Middle Eastern/Latin American/African) is experiencing a strong rate of growth, up from 0.9% of the population in 2006 to 1.2% of the population in 2013.43 However due to the relatively small size of this group, less reliable data is available, particularly historic data. Looking at the international experience Even though New Zealand has a relatively small population, the experience of New Zealand families over the last 40 years generally reflects trends in other developed countries, in particular, the increasing diversity of relationship forms and family composition.44 We refer to international data and research where it is relevant, or where there is a lack of New Zealand-based data to draw on. It is important, however, to keep in mind that there are always differences in social and cultural norms in other countries, as well as differences in legal systems. Accordingly, we treat international data with appropriate caution. Why do we look at 1976, 1982, 2001 and 2013 in particular? Throughout this Study Paper we refer to several different points in time over the past 40 years. Sometimes this is due to limitations around data availability and reliability, but sometimes it is for a particular purpose. We look at 1976 because that is when the Property (Relationships) Act was first enacted. There was also a census that year, which provides a helpful comparator. 1982 is a key date because it followed significant changes to divorce laws (in October 1981), which eased access to divorce.45 2001 is also significant because that was when the Property (Relationships) Act was extended to cover de facto relationships for the first time, including same-sex de facto relationships. 2001 was also a census year. The most recent census was undertaken in 2013, and for that reason many of our “current” statistics refer to 2013. By looking at these years in particular, we can see how much New Zealand society has changed over this period. 14 0 5 10 15 20 25 30 35 40 Figure 1a. New Zealand marriage rate, 1976 to 2016 Source: Statistics New Zealand "General marriage rate, December years (total population) (Annual-Dec) (June 2017) <www.stats.govt.nz>. Per 1,000 not married population aged 16 and over Chapter 1 Changing patterns in relationship formation In 2013, 56% of New Zealanders aged 15 and over were partnered.46 What it means to be “partnered” has changed significantly since the 1970s, when the paradigm relationship was a marriage between a man and a woman. Now, fewer people are marrying and more people are in de facto relationships. There is a new form of partnership – civil union – and different relationships are also receiving greater recognition, including same-sex relationships. Greater legal recognition of more diverse relationships Historically the law only provided for one form of intimate relationship between two adults – marriage – which was available only to partners of the opposite sex. In recent decades changing social norms have prompted the extension of legal rights and protections to other forms of intimate relationships. In 2001, the Property (Relationships) Amendment Act 2001 gave partners in qualifying de facto relationships (including same-sex partners) the same legal rights and protections in respect of property as married partners. Since 2005, partners (including same-sex partners) have been able to enter into a registered civil union in New Zealand under the Civil Union Act 2004, which, for the first time, provided a legally equivalent alternative to marriage. In 2013, the Marriage (Definition of Marriage) Amendment Act 2013 changed the legal definition of marriage to allow same-sex partners to marry. These legal changes reflect growing social acceptance of more diverse intimate relationships. There are fewer marriages in New Zealand now than in 1976 In 2016, the marriage rate was 10.9, down from 15 35.5 in 1976 (Figure 1a).47 The marriage rate is now around one quarter of what it was when it peaked at 45.5 in 1971.48 The overall number of marriages each year is also decreasing, despite population growth (from 3,163,400 in 1976 to 4,747,200 in 2016).49 In 2016 there were 20,184 marriages in New Zealand, down from 24,153 in 1976.50 Superu notes that many factors will have contributed to the fall in the marriage rate, including the growth in de facto relationships (discussed below), increasing numbers of New Zealanders remaining single,51 and a general trend towards delaying marriage.52 People are marrying later in life The median age at marriage has continued to increase since it reached record lows in the early 1970s.53 In 2016, the median age at first marriage was 30 for men and 29 for women, compared to 23 for men and 21 for women in 1971, when the marriage rate peaked.54 More people are in de facto relationships In 2013, 22% of people who were partnered were in a de facto relationship, up from 8% in 1986 (Figure 1b).55 Few people enter into civil unions The number of people entering into civil unions since 2005 has remained relatively small, accounting for 1.4% of all marriages and civil unions between 2005 and 2013.56 The number of civil unions has dropped even further since same-sex marriage was legalised in 2013. In 2016, there were only 48 civil unions, accounting for 0.2% of all marriages and civil unions.57 0 10 20 30 40 50 60 70 80 90 100 1986 1991 1996 2001 2006 2013 Marriage De facto relationshps Figure 1b. Partnerships by relationship type (marriage and de facto relationships), 1986 to 2013 census years Sources: Statistics New Zealand Population Structure and Internal Migration (1998) at 10; Statistics New Zealand Population Structure and Internal Migration (2001) at 52; Statistics New Zealand “Partnership status in current relationship and ethnic group (grouped total responses) by age group and sex, for the census usually resident population count aged 15 years and over, 2001, 2006 and 2013 Censuses” <nzdotstat.stats.govt.nz>. Percentage
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