Many people believe that ‘common law marriage’ exists in England. However, this is a myth and while lawmakers are keen to modernise the law, at present couples that live together have few legal rights.
Legal rights for cohabiting couples
Potential pitfalls
Problems can often arise where a cohabiting couple split up, or when one dies. When couples are unmarried, their partner has no rights under intestacy laws to inherit from their estate, and do not benefit from Inheritance Tax exemption that spouses or civil partners do.
Where shared assets are in one person’s name, the surviving partner may have to go to Court to prove that they were a co-owner.
They may also have to make a claim under the Inheritance (Provision for Family and Dependants) Act 1975 to show that they qualify for financial provision. Even if they are successful, making a claim can put real financial pressures on the surviving partner.
Cohabitation agreements
To avoid problems such as these, a contract known as a cohabitation agreement can be created to protect couples that live together. This agrees ‘who owns what’ and can be really helpful protecting yourself in the case of a break-up or death of your partner.
The agreement will state who the contact is between and that it is legally binding. It can outline how significant assets, such as property, bank accounts and valuables should be dealt with.
Financial arrangements should also be included, for example, supporting any children or family members. As there are issues, such as tax planning to consider, it is usually advisable to consider your Wills at the same time as a cohabitation agreement.
Legal rights for cohabiting couples – how Nelsons can help
For more information on legal rights for cohabiting couples or setting up a cohabitation agreement, please contact a member of our expert Family Law team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online form.