The Civil Partnership Act

By Jackie Yates

 

It’s 2006 - the year hundreds of same-sex couples will make history by becoming civil partners under revolutionary laws introduced just weeks ago.

From December 5 2005 The Civil Partnership Act allowed gay and lesbian couples aged over 16 to enjoy the rights and responsibilities of married heterosexuals.

The Act means same-sex partners get numerous financial benefits and legal rights but the implications are far-reaching and complex.

Here Jackie Yates, solicitor at MWR, gets down to brass tacks.

Registering a civil partnership is a ground-breaking step which will enable same sex couples to plan their lives together.

Yet to safeguard their happiness - and their finances – people must plan ahead and be fully aware of their rights as a partnership and individuals.

Couples will find it hard to think about financial matters when they are embarking on a new and exciting chapter in their lives but they must sit back and make informed judgements.

This is particularly relevant where one person earns significantly more than the other for example or has assets worth much more than the other.

Another area to be addressed properly could be where one person has received an inheritance which they want to keep in the biological family.

Same sex couples who have registered their partnership now get equal treatment for tax purposes. Civil partners can leave each other their assets when they die without having to pay any Inheritance Tax. They will also be able to transfer assets between each other without the burden of Capital Gains Tax.

Once people register as a civil partner any existing wills are revoked. To leave something to anyone other than a civil partner means a new will must be made.

Civil partners will get improved pension rights but not full equality as with married couples. Survivor benefits are not automatic and state pension and contracted out rights in private sector schemes guarantee retrospective benefits to civil partners only to 1998.

The Government has said it will treat civil partners equally in public sector pension schemes such as the NHS and civil service but private sector occupational pension schemes are not affected by the Civil Partnership Act.

The Act does mean that employers will need to check that the way they run their business treats all staff fairly and makes them aware of their new rights.

For example employers creating a benefits package for employees and their spouses need to ensure this is available to civil partners too.

The new legislation entitles civil partners to the same benefits as married couples including flexible working, paternity and adoption leave, health insurance and time off before or after marriage/civil partnership registration.

Employers must ensure all their policies and company literature make it clear that wherever spouses and marriage are referred to this includes civil partners and partnerships.

Everyone in the workplace should be made aware of this and reminded not to discriminate against colleagues on the grounds of their actual or perceived sexuality.

It is very important that confidentiality is maintained at all times if employees request it. A person’s sexual orientation should not be revealed or hinted at by inappropriate disclosure of their status as a civil partner.

There is no legal duty for a member of staff to inform their employer they are in a civil partnership.

Civil Partnership facts:

  • The DTI predicts up to 22,000 people will enter into a civil partnership by 2010
  • Couples don’t have to live together to register their partnership
  • As with a marriage, registration of a civil partnership can take place in a register office or any other premises licensed for the purpose
  • The Act does not require a ceremony to take place but couples can arrange one if they want
  • If the relationship breaks down a court-based divorce process called ‘dissolution’ will take place