17
ISSUES: Marriage
Chapter 1: Marriage
Cause for hope
So why should Lord Marks’ Bill succeed
where others have failed? Part of the
problem has been the perception by
many that strengthening cohabitant’s
rights
is
often
perceived
as
undermining the traditional institution
of marriage – an issue which reached
a crescendo with the introduction of
marriage for same-sex couples. Now
that same-sex couples can marry,
it appears there is a real scope for
change.
The pace of reform has also been
hampered from opposition from a
proportion of cohabitants who prefer
the situation where no legal rights
accrue as a result of their relationship.
Significantly, Lord Marks’ Bill allows
cohabitants to opt out of the legal
protection being offered.
In
2013,
the
family
lawyer’s
organisation, Resolution, found that
69% of MPs agree that a mistaken
belief exists around common-law
marriage among their constituents,
while 57% also believed that the law
needed to change to provide greater
protection for unmarried couples on
separation.
It seems like a happy confluence of
events. Opinion in Westminster and
the success of the Same-Sex Marriage
Act could well translate into legal
certainty for cohabitants, who at the
moment remain in legal limbo in the
event of separation.
28 August 2014
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Ö
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with kind permission from
The
Conversation
. Please visit www.
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UK cohabitees have greater
financial risk, as confusion
reigns over legal and
benefit entitlements
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Half (51%) of cohabitees think government benefits are biased in favour of
married couples
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But confusion persists among cohabitees around their legal entitlements:
nearly one in five (19%) wrongly believe they are eligible for bereavement
benefit
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Over a third (36%) do not know that the Marriage Allowance exists
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A third (33%) of cohabitees have not yet named the beneficiary of their
pension
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Cohabitees’ finances are in poorer health than married couples, with lower
incomes and less savings
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Three quarters (74%) of cohabitees do not have a will and 64% have no life
insurance
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One in ten (10%) cohabitees also admit to only being with their partner as
they cannot afford to separate
N
early twomillionUK cohabitees
(51%) say government policies
are weighted in favour of
married couples, but many are still
confused about the financial risks they
are running, Aviva’s
Family Finances
research shows.
Measures such as the Marriage
Allowance and Inheritance and Capital
Gains Tax breaks are perceived by 1.7
million cohabitees to leave them on
an unequal footing – with only 12%
disagreeing with the view that policy
favours those who marry.
But in a sign of how unprepared
cohabiting couples are if the worst
were to happen, nearly one in five
(19% or 627,000) think they are
entitled to bereavement benefit
or allowances if their partner dies,
despite the fact upcoming legislation
will reaffirm that this does not apply
to cohabitees. With over a third (38%)
of cohabiting couples also having
dependent children
1
, and 74% (or 2.4
million couples) not having a Will, such
confusion could add to the financial
stress in the event of a parent’s death.
The
research
highlights
how
cohabitees are already less likely to
1 ONS,
Families and Households in UK
,
Nov 16
feel financially secure (68%) than
married couples (76%) and are often
in poorer financial health, as well
as having significantly less financial
protection in place.
The findings are significant as the
number of cohabitees has soared to
3.3 million, more than doubling since
1996 and accounting for 17% of all
families compared to 9% 20 years ago.
2
In contrast, while married couples still
represent the largest family group
(12.6 million), their share has dropped
from 76% in 1996 to 67% today.
Though the Cohabitation Rights Bill is
currently progressing in Parliament
3
,
which will give cohabitees certain
protections, the Bill is not expected
to be finalised any time soon. As this
family type continues to grow, it is vital
cohabitees are helped to understand
the financial implications of their
relationship choices.
When it comes to tax rights and
obligations, nearly one in five (18%
or 594,000 couples) think they are
eligible for the same Capital Gains Tax
breaks as married couples, and 15% of
cohabitees (495,000 couples) wrongly
2 ONS,
Families and Households in UK
, Nov 16
3 Cohabitation Rights Bill, parliament.uk
