Relationship debt sharing

When a person receives money they are not entitled to as a result of a false or misleading statement or omission this is regarded as fraudulent.

In the context of relationship debt, fraud is not limited to someone who has been prosecuted or the individual concerned. There must however, be some degree of fraud on the part of the person in receipt of the benefit. In the case of partners, if they 'knowingly benefited' or 'ought to have known' that fraud was occurring, then this will constitute relationship debt.

When the Ministry establishes an overpayment by mistake the payments made to the client are not considered to be as a result of fraud.

From 7 July 2014, an undeclared partner is 'jointly and severally' liable for a debt where the Ministry proves that they:

• knowingly benefited, or ought to have known they were benefiting from welfare payments being received fraudulently by their beneficiary partner in excess of entitlements or
• made a false statement or mislead the Ministry and, as a result, their beneficiary partner is paid in excess of their actual entitlement