Overview

This Bill aims to provide legal protections for cohabiting couples in England and Wales, covering financial settlements upon separation and provisions related to inheritance and insurance in the event of death. It addresses situations where couples are not married or in a civil partnership but have lived together for a significant period or have a child together.

Description

The Bill introduces a framework for financial settlement orders for former cohabiting couples who meet specific criteria, such as living together for two years or more, or having a child together. Couples can opt out of these provisions through a legally binding agreement. The Bill also grants cohabitants certain rights regarding inheritance, including succession to the estate of a deceased cohabitant and financial provisions from their estate, similar to those enjoyed by married couples. It clarifies insurable interests for cohabitants and adjusts death registration procedures. The Bill specifies which relationships are excluded (e.g., close family members).

Financial Settlement Orders

Former cohabitants can apply to the court for a financial settlement order within 24 months of separation, or with justification for exceptional circumstances. The court will consider various factors like income, assets, contributions to the relationship, and the welfare of any children involved. Orders may include lump sum payments, property transfers, or pension sharing. Consent orders, agreed upon by both parties, can also be made.

Inheritance

The Bill extends inheritance rights to cohabitants in cases of intestacy (dying without a will) to receive financial provision similar to that afforded to spouses. It also allows them to apply for financial provisions from the deceased's estate, even if there is a will.

Government Spending

The Bill does not provide specific figures for government spending. The primary financial impact relates to court costs associated with applications for financial settlement orders and related legal proceedings. Additional administrative costs may be associated with changes to death registration and inheritance processes.

Groups Affected

• Cohabiting couples: Gain legal protections regarding financial settlements upon separation and inheritance rights.
• Former cohabiting couples: May have access to financial settlement orders depending on the length of the relationship and other factors.
• Children of cohabiting couples: The bill considers their welfare when determining financial settlements and inheritance provisions.
• Legal professionals: Increased demand for legal services related to cohabitation agreements and court applications.
• Courts: Increased caseload from applications for financial settlement orders.

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