There are several important legal benefits of being married or in a civil partnership in the UK, including, but not limited to, inheritance rights, tax benefits, property rights, parental responsibility, and greater financial security in the event of separation. In this article, we will discuss some of the most important advantages of being legally married in the UK.
Tax benefits of marriage in the UK
One financial benefit of marriage in the UK is the availability of the Marriage Allowance, which allows one partner to transfer up to 10% of their Personal Allowance to their married or civil partner. To qualify for the Marriage Allowance, one partner must be a non-taxpayer, and the other must be a basic rate taxpayer.
Joint ownership of assets
Matrimonial assets may include the family home and other properties, savings, vehicles, personal possessions, investments, and pensions. A benefit of being married is the significant financial protection to both parties as assets are jointly owned. In the event of divorce, matrimonial assets are normally split fairly based on the financial needs and earning capacity of both individuals, in addition to the needs of any children from the marriage.
It is important to bear in mind that when it comes to unmarried cohabiting couples, in the event of separation, each partner is able to keep what is legally theirs, which can be particularly difficult for the lower income earning partner. This is why cohabiting couples often consider entering into a legally binding cohabitation agreement. Cohabitation agreements set out who will own which asset, who will pay household bills and cover the costs of raising the children, and how any pensions will be shared in the event of separation.
Parental Responsibility of Children
If you have parental responsibility, you have the legal rights and powers to make decisions regarding your children, including:
- Where they go to school
- The medical treatment they will receive
- Their religious upbringing
- How your child should be disciplined
Parental responsibility also means that you are legally responsible for protecting and looking after your children, providing them with a home and ensuring their needs are met. When a child is born to an unmarried couple, it is normally only the mother who has automatic parental responsibility. When a child is born to a married couple, however, both parents automatically have parental responsibility.
Having parental responsibility for your children can be extremely advantageous in the event of divorce. It provides greater protection and stability for the child because both parents can continue to play a shared role in their life and upbringing. It also provides greater rights when it comes to the family home child maintenance and makes it easier for the father to have child custody.
Inheritance Rights
A legal benefit of being married is that no inheritance tax is paid when, in the event of death, all assets pass to the surviving partner. On the other hand, if a couple are not married, if one party wants to give an asset to the other party (e.g. the family home) in their Will, an inheritance tax of 40% may be payable depending on the total amount inherited.
Importance of pre and post-nuptial agreement
Pre and post-nuptial agreements are increasingly important when it comes to protecting any assets acquired before getting married and the interests of children from a previous marriage). Pre-nuptial agreements are entered into between a couple who are about to get married, whereas post-nuptial agreements are entered into when already married, but both serve the same purpose. Nuptial agreements allow one party to keep certain assets from automatically being inherited by their married partner and are particularly common where people are marrying for the second or subsequent time. For example, it may be that one party wants to hold back money or property for the benefit of children from a previous marriage in the event of separation.
