Donna Whitehead examines the Law Commission’s recommendations on the financial rights of cohabitants on relationship breakdown
The Law Commission published recommendations on cohabitation reform in Cohabitation: the Financial Consequences of Relationship Breakdown (Cm 7182) on 1 August 2007.
According to the Office for National Statistics, the number of couples opting to cohabit has risen by 50% between 1996 and 2004. Despite this, the redistribution of money and property at the end of a cohabiting relationship can only be regulated—in the absence of an express agreement—by the imposition of complex equitable remedies. The commission has concluded that the application of these remedies is unfair, uncertain and procedurally complex.
WHO WILL BE PROTECTED?
The commission concluded that not all cohabitants should be able to obtain financial relief in the event of separation. To be protected, a cohabiting couple would have to satisfy three requirements:
- the couple would have to be regarded as eligible;
- they must not have agreed to opt out of the scheme; and
- the applicant would have to demonstrate a qualifying contribution to the
relationship.
