Overview

The Cohabitation Rights Bill aims to provide legal protections for unmarried couples (cohabitants) in England and Wales regarding finances and property upon separation or death. It establishes a framework for financial settlement orders, similar to those available to married couples, and addresses inheritance rights for surviving cohabitants.

Description

Financial Settlement Orders:

The bill allows former cohabitants to apply to court for a financial settlement order within 24 months of separation (or with exceptional circumstances). The court considers factors like contributions to the relationship, economic disadvantages, and the welfare of children. Orders might involve lump sum payments, property transfers, or pension sharing. Cohabitants can opt out of these provisions via legally binding agreements, subject to court review for unfairness.

Inheritance Rights:

The bill grants surviving cohabitants certain inheritance rights if the deceased died intestate (without a will). It amends existing legislation to include cohabitants as eligible for financial provisions from the deceased's estate, similar to spouses or civil partners. Surviving cohabitants also gain the right to make claims for bereavement damages.

Insurance:

The bill clarifies insurable interest rules, presuming cohabitants have an interest in each other's lives for insurance purposes, removing restrictions on the value of that interest.

Government Spending

The bill doesn't directly specify government spending figures. The increased workload on courts processing financial settlement orders and associated legal costs might lead to some increased spending. The exact financial impact remains to be assessed.

Groups Affected

Unmarried couples (cohabitants): The bill significantly impacts cohabiting couples, providing them with legal recourse for financial disputes after separation and granting them inheritance rights.

Children of cohabitants: The bill emphasizes the welfare of children of cohabiting couples in all relevant sections.

Solicitors and Barristers: Increased demand for legal advice and representation related to cohabitation agreements and financial settlement orders.

Courts: Increased caseloads for family courts dealing with financial settlement orders.

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