Cohabitation Rights Bill (HL Bill 47)

(ii) 20unless void or unenforceable for any other reason, are
binding on the parties to the agreement (but this is subject to
any alteration made under paragraph 11).

(2) Nothing in sub-paragraph (1)(a) affects the validity of any opt-out
agreement entered into in accordance with section 12.

25Saving

10 Nothing in this Part of this Schedule affects—

(a) any power of a court before which any proceedings between the
parties to a relevant agreement are brought under any other
enactment (including a provision of this Schedule) to make an order
30containing financial arrangements, or

(b) any right of either party to apply for such an order in such
proceedings.

Miscellaneous

Avoidance of transactions intended to prevent or reduce financial relief

11 (1) 35This paragraph applies in proceedings brought by one person (“A”) against
another (“B”) for the purpose of obtaining any financial relief by virtue of a
financial settlement order.

(2) If the court is satisfied, on an application by A, that B is, with the intention
of defeating A’s claim for financial relief, about to—

(a) 40make any disposition, or

(b) transfer out of the jurisdiction or otherwise deal with any property,

it may make such order as it thinks appropriate for restraining B from doing
so or otherwise for protecting the claim.

Cohabitation Rights BillPage 17

(3) If the court is satisfied, on an application by A—

(a) that B has, with the intention of defeating A’s claim for financial
relief, made a reviewable disposition, and

(b) that if the disposition were set aside, financial relief or different
5financial relief would be granted to A,

the court may make an order setting aside the disposition.

(4) If the court is satisfied, on an application by A in a case where a financial
settlement order has been obtained by A against B, that B has, with the
intention of defeating A’s claim for financial relief, made a reviewable
10disposition, it may make an order setting aside the disposition.

(5) An application for the purposes of sub-paragraph (3) must be made in the
proceedings for the financial relief in question.

(6) If the court makes an order under sub-paragraph (3) or (4) setting aside a
disposition, it must give such consequential directions as it thinks
15appropriate for giving effect to the order (including directions requiring the
making of any payments or the disposal of any property).

Provision supplementary to paragraph 11

12 (1) Any reference in paragraph 11 to defeating A’s claim for financial relief is
to—

(a) 20preventing financial relief from being granted to A,

(b) reducing the amount of any financial relief which might be so
granted, or

(c) frustrating or impeding the enforcement of any financial settlement
order which might be or has been made at A’s instance.

(2) 25In paragraph 11 and this paragraph “disposition”—

(a) does not include any provision contained in a will or codicil, but

(b) subject to paragraph (a), includes any conveyance, assurance or gift
of property of any description (whether made by an instrument or
otherwise).

(3) 30Any disposition made by B (whether before or after the commencement of
the proceedings for financial relief) is a reviewable disposition for the
purposes of paragraph 11(3) and (4) unless it was made—

(a) for valuable consideration (other than marriage), and

(b) to a person who, at the time of the disposition, acted in relation to it
35in good faith and without notice of any intention on B’s part to defeat
A’s claim for financial relief.

(4) If an application is made under paragraph 11 with respect to a disposition
which took place less than 3 years before the date of the application, or with
respect to a disposition or other dealing with property which is about to take
40place, and the court is satisfied—

(a) in a case falling within paragraph 11(2) or (3), that the disposition or
other dealing would (apart from paragraph 11) have the
consequence of defeating A’s claim for financial relief, or

(b) in a case falling within paragraph 11(4), that the disposition has had
45the consequence of defeating A’s claim for financial relief,

it is presumed, unless the contrary is shown, that the person who disposed
of or is about to dispose of or deal with the property did so or, as the case

Cohabitation Rights BillPage 18

may be, is about to do so, with the intention of defeating A’s claim for
financial relief.

Power to make consequential and supplemental provision

13 (1) The Lord Chancellor may by regulations make such further provision as the
5Lord Chancellor considers appropriate for the purposes of, in consequence
of, or for giving full effect to sections 10 and 11 and this Schedule.

(2) Regulations under sub-paragraph (1) may include provision for or in
connection with, in particular—

(a) the making of financial settlement orders having regard to pension
10benefits,

(b) the assumption of responsibility for payments required by financial
settlement orders in cases where compensation is payable under
Chapter 3 of Part 2 of the Pensions Act 2004 (c. 35) (pension
protection),

(c) 15the alteration after the death of the parties of relevant agreements in
respect of which a consent order has been made under Part 2 of this
Schedule.

Section 22

SCHEDULE 2 Amendments: financial provision on a cohabitant’s death

20Part 1 Amendments of Administration of Estates Act 1925

1 (1) The Administration of Estates Act 1925 is amended as follows.

(2) In section 47A (right of surviving spouse or civil partner to have own life
interest redeemed), in subsection (1) and the proviso to subsection (5), for
25“or civil partner” substitute “, civil partner or qualifying cohabitant”.

(3) In section 48(2) (powers of personal representative in respect of interests of
surviving spouse or civil partner) in paragraphs (a) and (b), for “or civil
partner” substitute “, civil partner or qualifying cohabitant”.

(4) In section 55(1) (definitions), after paragraph (iv) there is inserted—

(“iva) 30“qualifying cohabitant” has the meaning given by
section 46(4A)”.

Part 2 Amendments of Intestates’ Estates Act 1952

2 In the Intestates’ Estates Act 1952, for section 5 (rights of surviving spouse

Cohabitation Rights BillPage 19

or civil partner as respects the matrimonial home) substitute—

5 Rights of surviving spouse, civil partner or qualifying cohabitant as
respects the home

The Second Schedule to this Act (rights of surviving spouse, civil
5partner or qualifying cohabitant as respects the home) has effect.”

Part 3 Amendments of Family Provision Act 1966

3 In the Family Provision Act 1966, in section 1(1) (increase of net sum payable
to surviving spouse or civil partner on intestacy), for “or civil partner”
10substitute “, civil partner or qualifying cohabitant (within the meaning given
by section 46(5) of that Act)”.

Part 4 Amendments of Inheritance (Provision for Family and Dependants) Act 1975

4 In this Part of this Schedule “the 1975 Act” means the Inheritance (Provision
15for Family and Dependants) Act 1975 (c. 63).

5 In section 1 of the 1975 Act (application for financial provision from the
deceased’s estate)—

(a) in subsection(1)(ba) omit “or 1B”;

(b) for subsection (1A) substitute—

(1A) 20This subsection applies to a person if immediately before the
deceased died, the person and the deceased were cohabitants
within the meaning of the Cohabitation Rights Act 2016.”;

(c) for subsection (1B) substitute—

(1B) Section 14B of this Act sets out the circumstances in which a
25former cohabitant may apply for an order under section 2 of
this Act.”;

(d) after subsection (2)(aa) insert—

(ab) in the case of an application made by virtue of
subsection (1)(ba), means such financial provision as
30it would be reasonable in all the circumstances of the
case for the surviving cohabitant to receive, whether
or not that provision is required for his or her
maintenance;”; and

(e) in subsection (2)(b), after “by virtue of subsection (1) above” insert
35“or section 14B below”.

6 In section 2 of the 1975 Act (power of the court to make orders), after
subsection (1)(g), insert—

(h) an order varying any settlement, including a settlement made
by will—

(i) 40made on two persons, one of whom was the deceased,
who immediately before the deceased died were
cohabitants within the meaning of the Cohabitation
Rights Act 2016, and