Over 40,000 Civil Partnerships have been celebrated and a number of those have already been disolved. As the importance of the "pink-pound" continues to grow, London's family lawyers are being called upon to help an increasing number of same-sex clients, from the City and beyond.

The Civil Partnership Act, which came into force on 5th December 2005, has created a new legal status available only to same-sex couples, who are now able to register their partnership and enjoy the same rights and responsibilities as those that arise after marriage between heterosexual couples. As the law in this area is still evolving, and there is still some uncertainty in relation to the rights and obligations which arise following the celebration of a Civil Partnership, InsideDivorce.com asks family law expert James Stewart of leading law firm Manches for tips when entering a civil partnership.

1. To create a Civil Partnership, a civil partnership document needs to be signed in front of two witnesses and a Registrar at your local Registry Office.
   
   
2. A Civil Partnership can only be ended following the death of one civil partner or by Court Order. The law in relation to the dissolution of Civil Partnerships is almost identical to the law which applies to heterosexual divorce. Potential civil partners should know that a presumption of equality applies to the division of capital on dissolution. A partner’s wealth can be decimated by dissolution and careful planning is therefore essential.
   
   
3. Civil Partnership and marriage carry the same obligations and confer a huge amount of protection on the financially vulnerable party. This is important as, in England, there are no statutory provisions for co-habiting couples to obtain remedies which are available to married couples or civil partners. For example, a civil partner may be required to provide ongoing maintenance to their former partner on dissolution.
   
   
4. In high value cases, England is the most generous jurisdiction in the world to financially disadvantaged spouses or partners on divorce or dissolution. Pre-partnership agreements are a neglected area of estate and wealth planning and should certainly be drawn up in the vast majority of cases. As more than one in three Civil Partnerships will end in dissolution, the case in favour of executing a pre-partnership agreement is a statistical “no brainer”. If the couple are likely to live abroad, a mirror agreement or its nearest equivalent should be drawn up in any other relevant jurisdiction.
   
   
5. If you have celebrated a Civil Partnership, but do not have the benefit of a pre-partnership agreement, consideration should be given to drawing up a post-partnership agreement. Clearly this will require careful negotiation.
   
   
6. The celebration of a Civil Partnership will give rise to tax benefits. Civil Partners can transfer assets to one another without incurring any Capital Gains Tax liabilities; they can take advantage of income tax exemptions and personal allowances as a couple; and, upon the death of one civil partner, any money or property left to the other partner is exempt from Inheritance Tax.
   
   
7. A Civil Partnership will invalidate any existing Will. Civil partners will therefore need to remember to create a Will following the registration of their partnership. If one civil partner dies without a will, the surviving partner will be able to claim from the deceased’s estate under the intestacy rules.
   
   
8. Other benefits include; being able to benefit from a civil partner’s occupational or private pension; being able to apply for parental responsibility of a civil partner’s children; gaining rights as a next-of-kin; being entitled to the same employment rights as married couples; recognition for immigration and nationality purposes; and access to fatal accidents compensation.
   
   
9. Civil Partnerships are a relatively new concept that have yet to be embraced on a global scale. Accordingly, not all foreign jurisdictions acknowledge the existence of Civil Partnerships and the rights that are created by them. If civil partners are considering moving abroad it is advisable to seek advice on the effect this will have on their respective rights.
   
   
10. If a Civil Partnership comes to an end, it is often more cost effective for the couple to choose collaborative law as an alternative to court proceedings. Collaborative law is a relatively new form of dispute resolution where the couple and their lawyers agree not to litigate but instead commit to resolving any dispute through co-operative and respectful negotiation, allowing those involved to focus on what is important to them rather than relying on the strict requirements of a court imposed timetable. See www.centrallondoncollaborativeforum.com.
    

I have acted for a number of clients who were shocked to learn of their obligations to their civil partners on dissolution. They complained that the starting point of equality in relation to the division of capital, possible ongoing maintenance and the like had never been adequately explained to them in advance of the Civil Partnership. Is a Civil Partnership worth it? Anyone contemplating one should certainly speak to a lawyer with experience in family law.

-James Stewart
Manches LLP