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By Sarah Modlock
Controversy and civil partnerships have long been bedfellows. Traditionalists may have been outraged when the law was changed in December 2005 but the past three years have seen ongoing headlines and now an initial surge of popularity among same sex couples has given way to the first wave of 'divorce' and acrimony. Little Britain star Matt Lucas recently split from Kevin McGee after a four-and-a-half year relationship and two years of civil partnership and in May pop star Pete Burns split from Michael Simpson just 10 months into their civil partnership, saying the partnerships do not work and that he was happier being married to a woman. Burns, had previously been married to stylist Lynne Corlett for 28 years. He said civil partnerships were a "commercial break" compared with the "full movie" of marriage, claiming men are too predatory and the gay community too promiscuous for civil partnerships to thrive. Of course, this view is unlikely to be shared by the 27,000 couples who have formed civil partnerships in the UK since 2005. "Civil partnerships have brought joy and fulfilment to thousands of lesbian and gay couples," says Derek Munn, of the gay rights organisation Stonewall. "Just as with marriage, some relationships may fail." But it seems that many gay couples are now avoiding civil partnerships altogether. Figures from the Office of National Statistics show that civil partnerships fell sharply last year - dropping by nearly half to 8,728. Most of the civil partnerships - 55%- in 2007 were between men. So what laws apply to civil partnerships and what happens, financially, when one breaks up? How do civil partnerships work? Two people of the same sex can have their union recognised legally and enjoy the same legal rights as married couples through a civil partnership. The arrangement is open to any unrelated couple of the same sex over the age of 16, provided neither is already married or in another partnership. Both parties sign a document and the partnership is formed - in contrast to civil marriages which require spoken commitments and witnesses. Civil partnerships can only be conducted by registrars and have no religious basis, although this debate is hotting up following the recent "marriage" of two gay priests held at a London church in front of hundreds of guests. The Archbishop of Canterbury, Dr Rowan Williams, and the Archbishop of York, Dr John Sentamu, said an investigation was taking place into the service for the Reverend Peter Cowell and the Reverend Dr David Lord, who were already civil partners. The Reverend Martin Dudley, who performed the service, said he had no regrets: "Nothing jarred, nothing felt even vaguely inappropriate. New and untried - but not wrong." What is the financial position? Almost all the key elements that come with marriage apply. The law accords civil partners equitable treatment for important financial matters, such as inheritance, pensions provision, life assurance and maintenance where children are involved. It also provides next of kin rights for couples, such as in their dealings with hospitals. Civil partners will be able to make gifts or bequests to their partners with the benefit of IHT exemptions, as married couples do. They can also transfer assets to each other, such as property and company shares, without having to pay Capital Gains Tax. A civil partner is entitled to a share of an ex-partner's pension if the relationship is formally ended, for example by dissolution. If one of the partners dies before the other, the survivor is treated like a spouse if there is no will. The survivor will also inherit property and acquire pension rights as if he or she had been married. Neither partner is liable for the other's debts unless one acted as a guarantor for the other or agreed to a joint liability. However, a civil partner can be liable for debts relating to council tax or a social fund loan. If a couple split up and they disagree about who owns property, any goods and property acquired during the civil partnership are presumed to be owned jointly. Gifts and inherited goods belong to the person who received them. Goods acquired before the civil partnership belong to the person who acquired them. Both civil partners have a right to remain in the home unless a court has ordered otherwise. If the home is sold a civil partner will usually have the right to continue to live in it unless they have agreed to the sale. They are not entitled to a share of the proceeds unless they are a joint owner. They may be able to claim a share in a settlement on the dissolution of a civil partnership. "Civil partnerships undoubtedly provide greater financial security for both partners," says independent financial adviser Saran Allot Davey. "However, when the partnership comes to an end the sharing of the assets, insurances, and pensions have to be split as in the case of marriage in order to ensure the individuals have financial security out of the relationship. Financial advice is as important at this stage as it is at the outset." Cohabiting couples Only now is the great myth about 'common law' marriage - which has not existed since 1753 - being debunked. Currently, Britain's four million cohabiting couples - whether heterosexual or same-sex - have hardly any rights in the event of a split or the death of their partner. If you split up and the tenancy for your rented home is in your ex's name only, you will have no automatic right to stay if your ex asks you to leave or walks out. If your ex owns the home, and there's no other agreement or understanding in place, you will have no automatic right to stay if your ex asks you to leave. If there's no other agreement in place, your ex will walk away with all the savings and possessions they built up out of their own money. Where you bought things together but each contributed different amounts to the price, you own it in the shares in which you contributed. Another area often overlooked is the ability for one partner to take money out of a joint account unless limits are set. Debts in both names mean that you can both be pursued to repay the cash, even if only one of you has spent it. If your partner dies without making a will, you won't automatically inherit anything from them, including the family home if it's in their name or - crucially - even if you own it jointly as 'tenants in common'. You will not get any state bereavement benefit or a state pension based on a percentage of your ex's national insurance contributions, even if you had given up work to look after the children or the family home and depended on your partner's income. If they have made a will and what you inherit is worth more than £312,000 (for 2008-9), you will have to pay inheritance tax. New rights for unmarried cohabiting couples could be introduced as a response to the falling numbers of married couples. The changes would give unmarried couples in England and Wales some of the rights of married partners, bringing those countries into line with the existing laws in Scotland. The changes have been delayed though and at time of writing no new dates for their introduction have been announced. Meanwhile, the government recommends that couples living together know their rights at the beginning and draw up an agreement to clarify things for each other. Find out more at www.advicenow.org.uk. 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