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Protection in the Pipeline for Cohabitants?
Practice area: Family
Neale Grearson
Family solicitor Neale Grearson is optimistic that couples who cohabit may soon acquire legal rights to give them some financial protection if they separate or if one partner dies. Currently the law only protects married couples in this way. Like many lawyers, the Kester Cunningham John family team support the Cohabitation Bill which was debated in the House of Lords on Friday 13th March.
The Bill proposes giving legal rights to cohabitants who have lived together for at least two years or who have a child together. The aim is to ensure a fair financial outcome in the case of separation or death. It would not however put cohabitants on exactly the same footing as married couples. So, for example, they would not be eligible for any of the tax breaks offered to those who are married. Couples would also have the right to opt out of the scheme if they choose to.
Mr Grearson explains: "44% of children are now born to unmarried partners and as the law currently stands they are not properly protected financially if their parents part company. A recent survey* revealed that 51% of people still think that cohabiting couples have rights as 'common law' spouses; this is not the case. Surveys also reveal that in 2006 only 15% of cohabitants living in property owned by one or both of them had any written agreement about the proportion owned by each, 19% had sought some form of legal advice about their position, and only 12% had changed a Will as a result of their cohabiting relationship."
"We hear all too often of cases where someone gives up their career to look after the children, but when the relationship breaks up is at a severe financial disadvantage because they are unable to just pick up where they left off. In some cases one partner will have moved into a property which is already owned by the other and will pay the household bills while their partner pays the mortgage. In this case they currently have no rights in relation to the property. The proposed changes aim to achieve a fair outcome and to acknowledge that the law, as it currently stands, is out of step with the structure of modern families."
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