Parliamentary.ai

Overview

This Bill aims to provide legal protections for cohabiting couples in England and Wales, addressing financial matters both during and after the relationship, including upon the death of one partner. It grants rights similar to those enjoyed by married couples or civil partners, but with an opt-out provision.

Description

The Bill defines a "cohabitant" as two people living together as a couple who meet specific criteria (e.g., shared parenthood, joint residence order, or two years of cohabitation). It introduces "financial settlement orders," allowing former cohabitants to apply to court for financial settlements within 24 months of separation (or with justifiable cause after this period). The court will consider factors such as contributions, income, needs, and conduct when making an order, which could involve lump sum payments, property transfers, or pension sharing. The Bill also allows cohabitants to opt out of these financial settlement orders via legally binding agreements. In cases of death, the Bill grants surviving cohabitants certain rights regarding inheritance, insurance policies, and registration of death, similar to those of spouses or civil partners. This includes the right to apply for financial provision from the deceased's estate.

Government Spending

The bill does not provide specific figures on government spending. The main financial implications are likely to relate to the increased workload on the courts processing financial settlement orders and related legal disputes.

Groups Affected

• Cohabiting couples: The Bill significantly impacts cohabiting couples by providing them with legal rights regarding property and finances in cases of separation or death. Some couples may choose to opt out.
• Former cohabiting couples: The Bill provides a mechanism for resolving financial disputes following separation.
• Children of cohabiting couples: The Bill considers children’s welfare in financial settlement orders and in cases of a parent's death.
• Courts: The Bill is likely to increase the workload of courts dealing with family law cases.
• Legal professionals: Solicitors and barristers will be involved in advising couples on opt-out agreements and representing them in court proceedings.