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Long wait for Co-habitation legislation will lead to further court disputes for unmarried couples- 14/06/2010
With little sign that giving further legal rights to unmarried couples is a priority for the new Government, there is likely to be an increase in former co-habitees facing expensive legal disputes, according to a leading Midlands’ Family Law solicitor.
Fay Rothery, Partner in the Family Law Department at West Midlands law firm FBC Manby Bowdler LLP, says that providing legal protection for unmarried couples appears low down on the agenda of the Tory Liberal Coalition Government.
“There was a Co-habitation Bill which stalled in March 2009, but this is unlikely to be revived. While spokespeople for both Liberal Democrat and Conservative parties have made some supportive noises about a new Bill which would particularly safeguard the rights of children after a break down of a relationship, there was no mention of it in the Coalition Agreement and no sign that it is a priority,” says Miss Rothery, who is based in FBC Manby Bowdler’s Telford office.
According to Miss Rothery new legislation for the estimated 4.4 million co-habitees would be welcome, as contrary to popular belief, there is no such thing in English law as a Common Law husband and wife.
She says: “As there is no legal framework, when a co-habiting couple’s relationship breaks down, the complex laws of trust and property apply. The principles are rigid and allow the court very little discretion.
“Whereas with a married couple, the court will divide the assets on a fair and reasonable basis, this is not the case with cohabiting couples. The courts are bound to follow the law, even if the result is unfair to one party.
“This can lead to lengthy and expensive legal arguments over how to divide assets, particularly the family home,” explains Miss Rothery.
“If the property is owned in joint names, it will usually be divided in accordance with what is stated on the transfer deed regarding the ownership, regardless of the ex-partners’ needs or contributions. If it is in the sole name of one partner, then the onus will be on the non-legal owner to establish they have an interest in the property.”
Miss Rothery continues: “With the current economic conditions, we are seeing that financial pressures are often leading to the break down of people’s relationships, and in these circumstances people are more likely to argue over the assets that have been accumulated in the course of the relationship.
“As there is no immediate prospect of new legislation, all co-habiting couples would be well advised to regulate their own relationships with a co-habitation agreement, setting out what is to happen to their assets on the breakdown of the relationship.
“It is generally accepted that such agreements will be upheld by the court, provided the parties have received legal advice and it complies with rules of contract law.
“Drawing up a legal agreement is good for a couple who are already living together, or about to co-habit. It makes them think much more deeply about all the issues involved in living together, and gives each party the chance to think through a number of different scenarios and agree on the outcomes should they split up,” concludes Miss Rothery.
With 39 partners, FBC Manby Bowdler is the fourth largest law firm in the West Midlands. The firm has offices in Wolverhampton, Willenhall, Telford, Shrewsbury and Bridgnorth.