The government has launched a consultation proposing rules for people who live together but have not tied the knot
A significant change is being proposed for individuals who are cohabiting in an unmarried relationship. Under a new ‘three year rule’ individuals would now be granted additional rights if their partner passes away or the relationship concludes.
In England and Wales, unmarried partners have no automatic legal right to inherit from a deceased partner, regardless of how long they lived together or if they have children. Speaking on the BBC’s Money Box programme, expert Paul Lewis explained that the new rules could make a huge difference. To qualify they would have to be a minimum of three years cohabitation under the proposals except if the couple had a child or children together.
He said: “In the last 24 hours the government has published its plans to give couples living in unmarried bliss more financial rights. Cohabiting is the fastest growing type in England and Wales with more than 3.5million couples living together without being married or in a civil partnership.
“But if their relationship ends or one of them dies they have almost no legal rights in England and Wales to share or inherit money or property belonging to the other, regardless of how long they have lived together or if they have children.
“These new government proposals would change that.”
The government stated the current ‘outdated’ system provides unmarried couples who cohabit with limited financial rights if their relationship breaks down. Under the proposals, individuals could obtain access to a portion of a property sale to help safeguard their financial future. It stated that difficulties emerge when people separate and one individual is financially reliant on another. The government said the proposal will assist couples, including survivors of domestic abuse, to achieve financial security and independence at the conclusion of a cohabitating relationship, ‘whatever their marital status’.
The consultation will also examine whether courts should place greater emphasis on the effects of domestic abuse, including controlling or coercive behaviour or economic abuse, when evaluating finances for married couples and cohabitants.
To prevent bereaved partners being left in uncertainty, the consultation will also consider enhancing protections for cohabiting couples by providing automatic rights to inherit if their partner dies without a will.
The government is also suggesting making pre-nuptial and post-nuptial agreements legally enforceable so individuals who opt to enter one can be assured their financial wishes will be respected if they divorce. A 10-week consultation has commenced on the proposals, which could include a new 3-year qualifying period. Joanne Edwards is a partner at Forsters and sits on the national committee of Resolution, the national family lawyers association. When asked how crucial it is for couples to consider this matter, she said: “It’s terribly important. Resolution, we’ve been delighted to see these proposals brought forward precisely because not enough people do thing about it, whether rights on separation, or rights on the first death when they’re not married and they find out, all too starkly, all too late, that they don’t have rights.”
Mr Lewis said: “Of course that couple has been together for 25 years and some people do believe that after a certain time there is something called a common law marriage.”
Ms Edwards said: “Despite successive education campaigns, that common law marriage myth still persists. Worryingly around 47 per cent of people, even in cohabiting relationships, still believe that, so it highlights the extent of the problem and why we can’t just keep saying either people need to get married or they need to be educated.”
Regarding the definition of a cohabiting couple within the new proposals, Ms Edwards explained: “This is really important and something which I do hope people grapple with the detail of because I know there is a concern about this prospect of the state seeming to impose eights that people don’t want any degree of permanence.
“The government says very clearly this would have to be two people living together as a couple in en enduring family relationship. There will be a checklist of factors that the court would take into account if there were any doubt about that and in terms of eligibility would have to be a minimum of three years cohabitation under the proposals except if the couple had a child or children together.”
Mr Lewis enquired about living arrangements which he suggested could be ‘fluid’ with individuals moving in while perhaps maintaining a previous residence or staying several nights weekly – and questioned when the ‘3 year clock’ would begin. Ms Edwards responded: “It’s an important point and one which the checklist of factors would deal with. It would be about the degree of permanence, whether they’re in a sexual relationship, what the public perception of their relationship is .
“It’s actually something we’ve got in legislation already, for example around adoption, and also plenty of other countries have this legislation already so have grappled with this. People need to be aware and decide how they want to frame their relationship and then regulate it between themselves.”
Mr Lewis asked: “If they do meet the criteria and enter into what the government is calling a cohabitation framework, what rights do they get over each other’s money or the home they share?” Mr Edwards outlined: “Under the proposals far more limited than if they were married. Marriage will remain what government wants to prioritise but it will be focused on their basic needs. It’s a basic framework of rights but making sure that nobody leaves an unmarried relationship in a position of need.”
Inheritance tax is excluded, Mr Lewis said, with provisions when one dies included such as what they might get. He continued: “But that exclude inheritance tax because that’s a matter for the Treasury – that seems a bit silly top ut it bluntly.” Ms Edwards stated: “One would have imagined that’s something that would need to be looked at so for now we’re grateful that any proposals are out there, the intestacy rule s have needed looking at for a long time.2”
Mr Lewis remarked: “If you don’t have a will, unmarried couples will get more rights than they’d have at the moment.” Ms Edwards confirmed: “They will. Only about 1 in 5 unmarried couples have wills and one will get more rights under the new rules but then again the qualifying criterial so the proposal being looked at is having to live together for five years before you qualify under those rules or for two years if you’ve got children, so it won’t be the automatic you would qualify under the interstacy rules.” The consultation was launched on June 5 and runs for 10 weeks, closing on August 14. Throughout this period, the government will seek opinions from members of the public, legal professionals, academics, charities and various other stakeholders.
Deputy Prime Minister David Lammy said: “When a relationship comes to an end, each partner should have the support and certainty they need to rebuild their life. We’re launching this consultation to make sure our new family law builds a fair system that offers the most vulnerable protection in the event of a breakup, and at a time where the country is facing cost of living pressures.
“Whether you’ve been left bereaved by the sudden and unexpected death of a partner, or escaped horrific domestic abuse, our laws should work to protect you. These reforms strike an important balance between tradition and modernity. I’m determined that our justice system should work for everyone who needs it.”
To listen to Moneybox click here.
To read the consultation document click here.
