Happily Unmarried?
One of the major social changes of the last century has been how we arrange our family lives. Marriage is no longer the ultimate destination for every couple and divorce is no longer a social faux pas.
Unfortunately, whilst co-habiting couples and extended families are part of everyday life, the law has not kept up with these social changes, and people who co-habit have to deal with difficult areas such as wills and inheritance tax, co-habitation and property ownership without the established legal framework offered to their married counterparts.
One of the most persistent – and misleading – urban myths is that of the common law spouse. There is no such entity recognisable in law. However long a couple co-habit they will still not attain the same rights as a married couple.
Foot Anstey have set up the Living Together Group to support clients through some of the issues which arise out of co-habiting, not all of which are immediately obvious.
There is some confusion regarding whether the Civil Partnership Act 2004 gives all co-habiting couples the same rights as married couples. In fact, it only relates to same-sex couples who have gone through a civil ceremony. Accordingly, any couple, whether heterosexual or same-sex who has not either married or completed a civil ceremony will not have the same rights as a married couple.
This means that couples who live together do not have any automatic right to inherit each other’s estate. Whilst they may inherit any jointly owned property automatically, if there is no will in place, they will have to sue each other’s family in order to receive any benefit from assets owned in their partner’s sole name.
Co-habitees also miss out on the inheritance tax (IHT) advantages granted to spouses; married couples can pass an unlimited amount of property to each other on death free from IHT. Co-habitees will pay inheritance tax at the flat rate of 40% after the nil-rate allowance (currently £300,000) is used up.
It is not just estate planning where co-habitees are treated differently. Family issues are different too. Unmarried fathers may not necessarily have parental responsibility for their children. Any births registered before 1st December 2003, regardless of whether a father is named on the birth certificate or not, will not automatically qualify the father as having parental responsibility for his children. This means that the father has no legal status in his child’s life and whilst fathers can apply to the Court to have parental responsibility awarded to them, it is an extra legal hoop to jump through.
Separation can also cause problems for unmarried couples. Whilst marriage comes with a long established legal framework for dealing with the issues arising out of a marital breakdown, co-habitees have no such guidance.
Decisions regarding the care and maintenance of children and the division of property, jointly owned or otherwise, division of debts and pensions, cannot be decided by the family court. Any disputes could lead to possibly complicated and drawn out legal procedures.
This can bring about unwelcome results, which could have been anticipated and greatly reduced either by drafting a co-habitation agreement or, where a property is involved, a Declaration of Trust.
The Living Together Group have been working together with Relate to produce a series of courses for couples who are facing some of the issues above. In many cases, by having honest and up-front conversations at the beginning of the relationship, and putting the appropriate legal framework in place, a lot of the difficult issues which may arise later can be avoided or negotiated much more successfully.
This can be particularly important for couples in a second significant relationship, where each party is more open to discussions regarding practicalities from the outset. We have found that far from being a negative experience it is much more usually a positive experience which brings the couple together.
The first course takes place at Foot Anstey’s Exeter office on 26th January 2007 and is entitled “Happily Ever After…?”
With a mixture of relationship and legal guidance, this will be a fun and relaxing opportunity to chat about your future as a couple and give yourselves the best possible start for the New Year.
The course takes 10am to 1pm with an informal buffet afterwards and plenty of opportunities to ask questions privately if you prefer. The costs are £20 per couple (some concessions available) with the proceeds going to Relate.
If you would like to attend Happily Ever After or would like some more information regarding the course please call Relate on 01392 678488 or email reception@exrelate.fsnet.co.uk
Alternatively, if you would like to discuss or require any information regarding the issues highlighted above, please telephone the Living Together team at Foot Anstey on 0845 140 00 25 or click on the Enquiry button below.
Tuesday, 08 January 2008
