Overview

This bill aims to provide legal protections for cohabiting couples in England and Wales, covering financial settlements upon separation and provisions for inheritance and insurance following the death of one partner. It establishes a framework of rights and responsibilities for cohabitants that are currently lacking under common law.

Description

Defining Cohabitants

The bill defines "cohabitants" as two people (same-sex or opposite-sex) who live together as a couple and meet specific criteria. These include being legal parents of the same child, having a joint residency or child arrangements order, being parents of a child en ventre sa mere, or having lived together continuously for at least three years (excluding breaks of six months or less).

Financial Settlement Orders

Former cohabitants can apply to court for a financial settlement order within 24 months of separation (or with justification for a later application). The court considers factors like contributions of each party, economic disadvantages, and the welfare of any children to determine a just and equitable financial settlement. This can involve lump sum payments, property transfers, or pension sharing. Opt-out agreements, requiring legal advice from a qualified practitioner for each party, allow couples to avoid the application of these provisions.

Inheritance and Insurance

The bill addresses issues of inheritance and insurance. It presumes an insurable interest between cohabitants, extends certain inheritance rights to qualifying cohabitants in cases of intestacy, and provides for financial provision from a deceased cohabitant's estate. Specific amendments are made to several Acts, including the Administration of Estates Act 1925, the Intestates' Estates Act 1952, the Inheritance (Provision for Family and Dependants) Act 1975, and the Fatal Accidents Act 1976 to incorporate these changes.

Government Spending

The bill doesn't directly specify government spending figures. However, increased court applications and administrative costs related to financial settlement orders are likely. Additional costs could also arise from supporting changes to the existing legal framework and the necessary amendments to other relevant acts.

Groups Affected

The bill primarily affects:

• Cohabiting couples: Provides legal protections regarding finances and inheritance not previously available.
• Former cohabiting couples: Establishes a process for resolving financial disputes upon separation.
• Children of cohabiting couples: Their welfare is a primary consideration in financial settlement orders.
• Solicitors and barristers: Likely to see increased demand for legal advice related to cohabitation agreements and court applications.
• Courts: Expected to handle increased caseloads related to financial settlement orders.

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