A Private Members’ Bill has been introduced in the House of Lords by Lord Marks of Henley-on-Thames, that aims to provide financial protection for people who have lived together as a couple as cohabitants.
Amongst the provisions contained in the Bill is one allowing for a former cohabitant to apply to a court for a ‘financial settlement order’. Such an order could be applied for if the cohabitants have children, or if they have lived together as a couple for three years. The application must be made within 24 months of the cohabitants ceasing to live together, unless there are exceptional circumstances.
The Bill provides that a financial settlement order can be made if the court is satisfied either that the respondent to the application has retained a benefit, or that the applicant has suffered an economic disadvantage, as a result of “qualifying contributions” the applicant has made. A “qualifying contribution” is “any financial or other contribution made by the applicant to the parties’ shared lives or to the welfare of members of their families during the parties’ cohabitation or in contemplation of the parties’ cohabitation or likely to be made by the applicant following its breakdown”.
In deciding whether to make a financial settlement order the court must take into account various factors, such as the income and financial needs of the parties. The order can take several different forms, including the payment of a lump sum, the transfer of property or pension sharing.
The Bill also provides that the parties can agree to opt-out of its protection, by entering into a written opt-out agreement.
The Bill had its first reading in the House of Lords on the 5th of July and will have its second reading on a date to be announced. It should be noted that less parliamentary time is given to Private Members’ Bills, and as a result only a minority of them actually become law (this Bill has been introduced previously, but not progressed).
The full text of the Bill can be read here.
For a summary of the rights that cohabitants presently have when their relationship breaks down, see this post.
Image of House of Lords Chamber by UK Parliament [CC BY 3.0], via Wikimedia Commons.
