“The clock is ticking” on Government plans to reform the legal treatment of cohabiting couples, according to a leading family lawyer.
In its election manifesto last year, the Labour Party pledged that in 2025 it would look at reforming the inconsistencies between the ways the law treats couples who are cohabiting and those who are married or in civil partnerships.
Successive governments have discussed reforming current laws which leave cohabiting couples lacking many of the rights in relation to finances, property and access to children that are enjoyed by other couples.
But Caroline Young, senior associate in the family team at national law firm Clarke Willmott, says there is still no sign of any action as the end of the year approaches.
“Calls for reform to the legal treatment of cohabiting couples have been growing for a number of years and as far back as 2007, a Law Commission report set out a proposed framework for how the courts would deal with separating cohabitants,” she says.
“Lord Ponsonby, the then minister in charge of family justice, marriage and divorce, re-iterated that the situation would be addressed this year and there has been lots of talk about a public consultation that would establish the scope of any reform around property rights, financial maintenance and inheritance.
“However, the clock is ticking and we are still waiting for this consultation to be announced.
“There are real differences between the way finances, property and children are treated between separating couples in marriages or civil partnerships and those who are cohabiting. For example, if a couple owns more than one home then both partners are entitled to a share of the assets – this is not the case if they are cohabiting, and likewise with pension income.”
Caroline says that for most cohabiting couples, it is the woman who remains most vulnerable under current legislation if the relationship breaks down – for example, unmarried partners in a relationship are not automatically classed as next of kin.
“If the couple has children, very often it is the case that the man will have continued working and the woman will have stayed at home to raise the family, which will be to her financial detriment because she is not entitled to any of the man’s pension income.
“If the couple was married, she would be compensated and entitled to a share of the assets, likewise with income earned from the man’s business or any inherited assets. In a cohabitee relationship the onus is on the person who has run the home and raised the children – typically the mother – to provide evidence of the financial contribution that she’s made towards paying off the mortgage.
“This is a specialist area that needs careful handling and if there is litigation, the loser has to pick up the costs of the other party, so people need to be fairly certain of success before they embark on it, which of course acts as a disincentive.
“The current state of affairs in unsatisfactory and the time for reform of the rules around cohabitation in England and Wales is long overdue.”
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