Financial changes afoot for common-law couples

Later this week a Private Member’s Bill will come before the House of Lords to discuss the financial rights of unmarried couples who live together.

The Bill is being pushed by Lord Lester, and is part of a campaign called Living Together, organised by Resolution, the association of family lawyers in England and Wales; and seeks to redress the fact that after unmarried couples spilt many, including children, are left financially vulnerable.

Currently, those who live together in so-called ‘common-law’ marriages, have no rights after the breakdown of the relationship, even when there are children involved.  If the Bill is successful, unmarried couples will automatically be entitled to apply for certain financial orders when separated, unless they choose to ‘opt out’.

The proposed laws will apply to couples who have lived in a committed relationship together for at least two years, or they have a child together.  However, the new laws will not mean that unmarried couples will benefit from the tax breaks or pension rights of married or Civil Partnered couples, and the way that courts will decide on the outcome of financial claims will differ from that of a divorce. Maintenance will be limited to three years to encourage separated couples to become financially independent as soon as possible; and claims will be limited to ‘reasonable needs’ with ‘no presumption of equal sharing of assets’.

The changes could have a huge impact on the finances of thousands of people living together in the UK; currently over 14 per cent of cohabiting couples are unmarried, and the number is expected to rise to 3.8 million over the next 25 years.
Source: Timesonline.co.uk