Many people are surprised to learn that, even if they have lived together for a long period of time and have children, if their relationship breaks down, they do not have the same rights as if they were married. The term ‘common law wife’ is often used but it has no legal significance.
Couples who live together and choose not to marry will often find themselves at a significant disadvantage should their relationships break down. This is particularly true in relation to financial matters.
On the breakdown of a marriage, the Court has the power to divide up any assets and alter property rights, in order to achieve a fair result. Partners who live together, however, have to rely on strict and complicated property law rights to show that they have, for example, obtained a financial interest in the family home.
On divorce, spouses are able to claim maintenance payments from each other, to assist with their living expenses. This does not apply to unmarried couples, who have no legal right to seek ongoing financial help from each other, other than in relation to their children. Married couples are also able to claim a share of their spouse’s pension on divorce. This does not apply to unmarried couples.
Unless property is jointly owned, unmarried couples will not automatically inherit upon the death of their partner. Further, unmarried couples who do inherit through a gift left in their partner’s will may have to pay inheritance tax if the estate exceeds prescribed limits, whereas married couples are fully exempt from this tax.
Is always advisable for unmarried couples to seek legal advice before purchasing property together, to ensure that their intentions are clearly expressed. It is also advisable to enter into a Cohabitation agreement – a legal document which sets out a couple’s obligations towards each other during the relationship and upon any breakdown. Although such agreements are not binding on a Court, there is a growing trend towards them being upheld, subject to certain safeguards.
If and until any changes are brought in, it seems as though unmarried couples are stuck with the current state of the law, which many people would say is unjust, just because they have decided not to say ‘I do.’
Joanne Everett is available to offer advice in relation to all aspects of family law. Martyn Lucas is able to offer advice in relation to the preparation of wills and associated tax matters. Both can be contacted on 023 8022 1344.
