21/11/05 - Civil Partnerships -

The Civil Partnership Act will come into force on 5 th December 2005 . It bought with it a whole host of changes to the legal position of same sex couples. The Act affects everything from parental rights to pensions, Wills and inheritances.

From 5 th December 2005 adult same sex couples who are not in an existing registered partnership or marriage and are not closely related can register their partnership. Couples who register will have a new legal status as "registered civil partners" and will acquire a whole package of rights and responsibilities which subject to some key differences will place them on the same legal footing as married couples.

These rights include:

•  Eligibility for bereavement benefits

•  The same state pension benefits as husbands

•  The ability to pass on survivor's benefits of occupational pensions

•  Recognition of the partnership under the Inheritance and Intestacy (dying without a Will) Rules

•  Access to fatal accidents compensation

•  The obligation to support each other and any children of the family financially

•  Obligation to pay child support in the same way as married couples

•  Protection from domestic violence

•  Exemption from inheritance tax on property that passes between partners

•  Recognition of the relationship for immigration and nationality purposes

•  Exemption from testifying against each other in Court

•  Right to register the death of a partner

•  Tenancy succession rights

Formalities

There are a number of formalities which must be complied with to register a partnership. For example, the "civil partnership document" must be signed in the presence of each partner, the registrar and two witnesses who must then sign the document. The formalities will be carried out at a register office or any other premises licensed for this purpose.

Dissolution

There is a formal dissolution process available for civil partnerships that end much like divorce proceedings except instead of divorce civil partnerships are "dissolved".

The financial provision on dissolution corresponds to the provision made for finances on the breakdown of a marriage. The Court has have the power to make orders in relation to maintenance, lump sum, property adjustment, pension sharing etc. just as they do in divorce proceedings.

Children and Adoption

Under the Act any civil partner is entitled to apply for contact or residence of a child without first having to seek the permission of the Court.

Furthermore, the Act has amended the Adoption and Children Act 2002 so that civil partners can adopt.

Tax

Civil partners are now taxed like married couples. For example the inter-spousal inheritance exemption and exemptions for lifetime gifts and transfers applies.

On death - if a civil partner dies without a valid Will he or she now has similar rights on intestacy as a surviving spouse.

Civil partners are now treated as connected persons for the purposes of various anti-avoidable rules. For example, if each partner controls their own company the two companies will become associated to each other if the partnership is registered. This may increase the companies' corporation tax liabilities.

Employment

Employers now have to treat members of same sex partnerships in the same way as married couples. For example if employee benefits such as health care are extended to husbands and wives of employees they must now also be made available to civil partners. If an employer gives time off for a wedding the same should be given for a civil partnership registration ceremony.

Gavin Whyte

Member - Family Department

Sedgwick Kelly LLP

This information is intended for general guidance only and is not a substitute for obtaining legal advice. If you would like advice with regard to your specific circumstances please contact us.

How can Sedgwick Kelly LLP Help You

We can offer expert and confidential legal advice and support in a number of ways including

•  Making a new Will

•  Inheritance tax advice

•  Intestacy

•  Pre-registration Agreements

•  Advice on dissolution with regard to finances, property, residence and contact

•  Employment advice

•  Advice in respect of tenancies