The government has delayed plans to introduce
new rights for co-habiting couples. A consultation paper
was published in May 2006, and announcement of the resulting
legislation was expected.
The Law Commission - the body that advises the government on
legal reform - produced a report detailing suggested changes
to legislation following statistical evidence that there has
been a rapid increase in the number of unmarried couples living
together.
Many couples mistakenly believe in the concept of a ‘common
law’ marriage. This, however, does not exist, and
unless a couple is married or in a civil partnership, they are
not automatically entitled to many of the rights that they assume
they are.
The Law Commission is not suggesting that cohabitees should
be entitled to the same rights as married couples, but believes
that some sort of automatic financial protection could be implemented
in the eventuality of the relationship breaking down.
It is suggested that after a couple has lived together for two
years they should be considered for entitlement to a share of
any assets, especially where one party has gained an economic
advantage. The economically stronger partner is not obliged
to share any assets or financial benefits with the other partner
under the existing rules.
Co-habitees in Scotland are benefiting from a similar package,
but the government are refusing to introduce the scheme in England
and Wales until they have gathered sufficient research on the
cost of the agreement, without indicating when any subsequent
changes are likely to take place.
Co-habitees are also not automatically entitled to inheritance
or exemption from inheritance tax. Nor are they necessarily
classed as next of kin, so may not be consulted in the event
of incapacity. Property bought jointly is treated as such
in the eyes of the law. In the case where one party is
registered as the legal owner of the property, they will be treated
as the sole owner, regardless of the other partner’s financial
input into the household budget.
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