Unmarried Bliss?

by Maree Merrick of Miller Hendry, Solicitors

The Scottish Executive’s proposed Bill on Family Law is set to make a big difference to the rights of couples who choose to live together, but not marry. Contrary to the prevalent myth of the "common-law marriage", at present the law only gives very limited rights to cohabiting couples to claim property or financial support from the other, should their relationship end. This will change next year when the Family Law (Scotland) Bill comes into force.

Cohabiting couples will be given rights to claim a share of household goods, money and property at the end of a relationship. These rights will automatically cover all couples who are living together as husband and wife (including same sex couples) without the requirement for the couple to sign any form or agreement stating that they wish these rights to apply to them.

There are occasions when this seems fair, such as the common situation of one person giving up work to raise the family. If the relationship comes to an end then the person who has sacrificed his or her career may find their earning potential is less, their pension provisions are smaller, savings are perhaps in the other partner’s name and household contents and vehicles have been bought by the other partner. Individuals can end up leaving a long relationship with very little. The new Act will hopefully address that financial imbalance.

However, the law will also apply to the situation where one partner moves into the other’s home and doesn’t work or contribute to the running costs of the home. If the relationship ends after a short time, the partner who has made little or no financial contribution may be able to make a claim on their "ex".

Cohabitation agreements may be one possible solution for anyone who is worried about how they will be affected. Although it is difficult for couples who are happily choosing the paint for the living-room in their new flat to talk about what will happen financially if the relationship ends, by discussing matters and then drawing up an agreement, an acrimonious court battle could perhaps be avoided.

The most important point is that all couples who are currently living together in unmarried bliss, should be aware of the impact this new law could have on their financial situation. Couples thinking of moving in together should consider the implications carefully before taking the plunge!