Rights of Cohabitant Living With a Separated Married Person

The breakdown of a relationship can be extremely difficult and often leads to one or both parties seeking legal recourse out of necessity to address financial & property related issues and access arrangements when they are parents of young children. The law recognises second or subsequent relationships after marriage and in certain cases, affords rights of redress to parties who were living together after that relationship ends notwithstanding the fact that one or both of them may be married to a third party.

Child Maintenance

It has been the case in Ireland for many years [i]  that a court has the power to order maintenance payments against one parent in favour of another in respect of a non-marital child even though one parent might be married to a third party.  It is possible for child maintenance proceedings to issue against a married cohabitant whilst judicial separation or divorce proceedings are pending against him/ her. Maintenance payments for non-marital children should be paid equally in priority to maintenance for marital children[ii].

A claim for maintenance in respect of a dependent non-marital child is claimed under the Family Law (Maintenance of Spouses and Children) Act 1976 (as amended).

Maintenance, Lump Sum Payments, Pension Adjustment Orders in favour of Qualified Cohabitant

The Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 (the “2010 Act”) confers additional rights of redress on a ‘qualified cohabitant’ who is economically or ‘financially dependent’ on the other ‘by reason of the break-down of the relationship’ [iii] and it is ‘just and equitable’ for a Court to grant the specific relief sought under that Act in the circumstances.  It is important to note that rights under the 2010 Act only arise on the break down of the relationship.

The 2010 Act renders it possible for a qualified cohabitant to secure orders – including property adjustment, Compensatory Maintenance Payments[iv]  (or maintenance orders as referred to above) and pension adjustment orders[v].  – in his/her own favour personally, and not just in respect of maintaining a child of the relationship in question which is a novel step.

In circumstances where one or both parties are married, neither party will be deemed a qualified cohabitant until the cohabitant who is married, has been living separately and apart from his/her spouse for periods amounting to 4 years out of the 5 years prior [vi] to the date the cohabiting relationship ends.  In essence, neither party will be deemed a qualified cohabitant until the married party is entitled to seek a divorce.

A qualified cohabitant under the 2010 Act is someone who has been living with another in an intimate and committed relationship for 5 years or 2 years where they are parents of one or more dependent children.

It should be mentioned that the above reliefs under the 2010 Act apply subject to any Cohabitants’ Agreement contracting out of the said Act’s provisions.  A Cohabitants’ Agreement which has been entered into by the parties under section 202 of the 2010 Act will be enforced by a court save in exceptional circumstances where to do so would result in serious injustice.

Succession Rights

A qualified cohabitant also has a right to apply for provision from the net estate of a deceased qualified cohabitant under section 194 of the 2010 Act. In this respect, where the ending of the relationship is as the result of the death of the qualified cohabitant, the surviving cohabiting partner does not need to prove financial or economic dependence on the deceased in order to substantiate a claim to his/her estate under this section. However, the right of the qualified cohabitant under this section cannot exceed that which s/he would have been entitled to if the parties were married. In general terms, this could mean that the cohabitant would not be entitled to anything more than his/her ‘legal right share’ as defined in section 111 of the Succession Act 1965 (1/3 of the net estate if the Deceased had children living at the date of his/her death or 1/2 if s/he did not).

In addition, the right to be provided for out of a deceased cohabitant’s estate is strictly subject to a surviving spouse’s succession rights under the Succession Act 1965 which in small estates, could render any such right in favour of a qualified cohabitant valueless in practical terms. A surviving spouse could be first entitled to a legal right share (if the parties are not yet divorced) out of the net estate or could have a general right for proper provision to be made for him/ her under section 18 of the Family Law (Divorce) Act 1996 (the “1996 Divorce Act”). In addition, it is noteworthy that a court is required to consider the rights of other beneficiaries and the rights of a dependent child/ children prior to making an order under section 194.

An application for provision out of the deceased’s estate must be made within six months of the date of a grant of representation in the estate. There is a positive duty on the applicant/ claiming cohabitant to notify the personal representative of the proceedings and failure to do so could mean that the deceased’s assets would be distributed without any further recourse.

If the relationship ended prior to the qualified cohabitant’s death other factors apply in particular the surviving cohabitant will be required to prove financial dependence.

It is possible for both cohabitants to renounce/ waive their entitlements under the 2010 Act by entering into a Cohabitants’ Agreement. Such an agreement would be enforced by the courts except in exceptional circumstances where doing so would cause a serious injustice[vii].

Property Rights – Property Law

Separately it is worth noting that in addition to rights under the 2010 Act, parties living together may be in a position to obtain relief under the Land and Conveyancing Law Reform Act 2009 (the “2009 Conveyancing Act”)  for an order of partition (separation of each party’s interests in the property) and sale of property co-owned by them, either legally or beneficially under section 31 of that Act.

The application of property law in relation to co-owned properties can be very complicated where the parties are not in agreement in relation to their respective interests and the values of the same. For example, one party whilst not named on the title deeds may have contributed towards a mortgage on the property in which case s/he will have a beneficial interest in that property as a result. Disagreements also frequently arise in determining the exact value of alleged indirect financial contributions made by one party to the repayment of the mortgage.

Reliefs under the 2009 Conveyancing Act can be available in tandem with rights under the 2010 Act – ie in circumstances where the parties were living together and are deemed ‘qualified cohabitants’ under the 2010 Act (as above). Due to the wide reliefs available under the 2010 Act and the fact that proceedings, if issued are heard ‘in camera’ or in private in a family law court under that act, it is generally advisable for proceedings to issue under the 2010 Act where possible. Proceedings under the 2009 Conveyancing Act would be considered a ‘civil’ matter heard in public.

Where the application of the rules in the 2009 Conveyancing Act would cause an injustice when applied to what is in essence a family law dispute, in certain limited situations outside the scope of this article, equitable doctrines could apply to ease a strict application of those rules – such as placing a ‘stay’ or a hold on an order for sale of a property until the dependent child reaches 18 or 23 and in receipt of full-time education.

Summary

In summary, the law affords rights to cohabiting couples in certain situations, even though one or both of them may be married. Cohabiting couples do not have the same rights as married couples and their rights on succession are second in priority to the right of a surviving spouse and regard must be had to other beneficiaries, if a court is required to assess a claim under the 2010 Act. It is therefore important for a cohabiting couple comprising one or both individuals who are married to third parties to ensure each of them is aware of their rights and have made appropriate arrangements by a Will or otherwise in the event one pre-deceased the other.

Whilst every effort has been made to ensure the accuracy of the information contained in this article, it has been provided for information purposes only and is not intended to constitute legal advice. Amorys Solicitors is a boutique commercial and private client law firm in Sandyford, Dublin 18, Ireland.
For further information and advice in relation to “Rights of Cohabitant Living With a Separated Married Person”, please contact Deirdre Farrell, partner, Amorys Solicitors deirdre@amoryssolicitors.com, telephone 01 213 5940 or your usual contact at Amorys.

[i] Since the introduction of the Status of Children Act 1987[ii] S. 3 of the Status of Children Act 1987 which in effect states that the marital status of a child’s parents is to have no effect on the child’s relationship with them is support for this statement.

[iii] See Section 173 of the 2010 Act

[iv] Section 175 of the 2010 Act

[v] Section 187 of the 2010 Act

[vi] This time period will change when a commencement order has been made in respect of section 4 of the Family Law (Divorce) Act 2019

[vii] Section 202 (4) of the 2010 Act

The Mediation Act 2017 and Litigation in Ireland

Many of the provisions of the Mediation Act 2017 (“the Act”) which became effective on 1st January 2018, placed already existing practices in relation to mediation on a statutory footing. However, the Act’s statutory promotion of mediation as a viable, effective and efficient alternative to court proceedings is no doubt a welcome introduction for litigants in Ireland.

Whilst before the Mediation Act 2017 came into force it was the practice of many if not most solicitors and barristers to advise clients of the benefits and mechanics of mediation as an alternative to court proceedings, there is now a statutory obligation on them to do so. Under the Mediation Act 2017, the High Court now has the power to stay or halt proceedings where a solicitor has not confirmed to the Court by way of a certificate that the Plaintiff has been advised of mediation in the terms prescribed by section 14 of the Act. The Act, as it currently stands, does not require solicitors acting on behalf of defendants to file a similar statutory declaration although they will no doubt advise their clients of the benefits of mediation in practice given the risks of the making of adverse costs orders outlined below.

It has always been open to a Court to consider a party’s conduct in litigation (in particular in relation to mediation) when making costs orders (order 99 of the Rules of the Superior Courts) too but the Act further highlights judicial scrutiny in this area. There is arguably therefore additional risk for a defendant that s/he could be held liable in full or in part for a plaintiff’s costs of litigation, should it decline mediation. Section 21 of the Mediation Act 2017 further strengthens “judicial discretion” to take into account “any unreasonable refusal or failure” of a party to consider or attend mediation when awarding costs at the conclusion of court proceedings. This is no doubt a welcome introduction for litigants who may not have sufficient resources for lengthy and protracted court proceedings.

There is no statutory obligation on parties to agree to mediation but if parties to a dispute do so, the Act provides that a ‘Mediation Agreement’ is to be signed by both parties specifically dealing with the appointment of a mediator, payment of his/her costs, the place and time of the mediation and the way in which it is to be conducted and explicitly acknowledging that the mediation and all reports, notes and records resulting therefrom are confidential and cannot be used in court proceedings. The benefit of the Mediation Agreement is that it provides certainty for the parties thereto and a clear timeline for the way in which their dispute will be dealt with. The confidentiality requirement can also be attractive for many commercial and family law litigants.

The Act further codifies the role of a mediator and provides for the introduction of Codes of Practice for the conduct of mediation by qualified mediators. A mediator who subscribes to a particular code of conduct must provide a copy of the code to each party involved in the mediation.  At present there are no codes of conduct prescribed for mediators in Ireland and mediators are unregulated here.  The Law Society of Ireland recommended in its Submissions at the Committee Stage of the bill that the Act would go further than it has in this regard but the opportunity was not seised at that stage.

A Mediation Agreement, when signed by all parties to a dispute has the effect of stopping the time within which to bring court proceedings under the Statute of Limitations Act until 30 days after the mediation process has terminated. This will be a welcome introduction for litigants some of whom who prior to the introduction of the Act, submitted to mediation at a stage when due to time constraints, it was necessary to issue court proceedings in tandem with the mediation process resulting in two ‘sets of costs’ for both parties.  The suspension of the statute of limitations during the mediation process is therefore extremely beneficial for parties to a dispute.

The new provisions in the Act requiring parties to consider mediation should be helpful in removing what may be seen as an obstacle to mediation or negotiation in practice. There can be occasions where parties do not want to propose mediation or negotiation as it may be misinterpreted as a sign of weakness. This new statutory obligation on solicitors, including importantly in house solicitors, to inform clients of the mediation process and the requirement to consider it before issuing proceedings may make parties less concerned about this possibility and should offer a feasible and cost-effective alternative to court proceedings.

The Mediation Bill 2017 was passed by the Houses of the Oireachtas and enacted on October 2 2017. On December 13 2017 the Minister for Justice and Equality signed the Commencement Order of the Mediation Act 2017 and all sections were commenced as of January 1 2018.

Whilst every effort has been made to ensure the accuracy of the information contained in this article, it has been provided for information purposes only and is not intended to constitute legal advice. Amorys Solicitors is a boutique commercial and private client law firm in Sandyford, Dublin 18, Ireland.
For further information and advice in relation to “The Mediation Act 2017”, please contact Deirdre Farrell, partner, Amorys Solicitors deirdre@amoryssolicitors.com, telephone 01 213 5940 or your usual contact at Amorys.

***Competition*** Win 2 tickets to Mario Rosenstock at the Gaiety Theatre, Dublin

***Competition***

Win Tickets to Mario Rosenstock

We have two sets of 2 tickets to Mario Rosenstock, “In Your Face!” at The Gaiety Theatre this Saturday night, 26th May 2018 to give to two of our Facebook, Twitter and LinkedIn followers. To be in with a chance of winning, like and/or follow us on Facebook, Twitter and LinkedIn and send your answer to the below question to info@amoryssolicitors.com.

What word is missing from the following sentence?

Amorys Solicitors is a boutique commercial and private client law firm with expertise in property, employment, company & corporate law, family law and personal injury litigation.

Our Twitter Page: https://twitter.com/AmorysSolrs

Our Facebook Page: https://www.facebook.com/AmorysSolicitors/

Our LinkedIn Page: https://www.linkedin.com/company/amorys-solicitors/

Our website : https://amoryssolicitors.com

The winners will be chosen at random and announced on Facebook at 9 am this Thursday,24th May 2018.

*Please note there must be a minimum of 14 entrants for this competition to run.

The personal information that you provide us in this competition will be used solely for the purposes of choosing winners at random.  At the end of the competition, you will be provided with an option to have your information erased completely or to join our mailing list for our quarterly newsletter.  Further detail as to how we treat personal data received from third parties through our website is set out in our data protection and privacy statement.

Best of luck!*

Amorys Competition 2 tickets to Mario Rosenstock Dublin

Sharon Scally named Sole Principal of the Year at the Irish Law Awards 2018

Sharon Scally has been named Dublin Sole Principal of the Year at the annual Irish Law Awards.

Over 90 firms, practitioners and in-house teams attended last Friday’s ceremony which was opened by Minister for Justice and Equality Charlie Flanagan and hosted by RTÉ presenter Miriam O’Callaghan.

Now in its seventh year, the awards recognise excellence and achievement in the Irish legal industry and profession throughout Ireland.

Commenting on the awards Sharon Scally said: “Winning Dublin Sole Principal of the Year was very much a team effort.  We are thrilled for the recognition that this award represents in the Dublin legal community.  I would like to acknowledge the hard work of our team and the support of our clients and friends.  We will continue to ensure our clients receive the best legal advice and guidance available.” 

Katherine O’Riordan, Event Director said, “The Irish Law Awards has become a huge success over the past 6 years. The event has grown exponentially and this year we are delighted to have the support of Clinch Wealth Management in recognizing excellence within the legal sector. The standard this year was exceptionally high.”

Amorys was shortlisted in three other categories: Employment Law Firm of the Year; Excellence in Client Service; and Dublin Family Law Firm of the Year. Wendy O’Brien, legal executive was also shortlisted as a finalist for Legal Executive of the Year.

Sharon Scally and a small number of local ratepayers in Sandyford were instrumental in establishing a Business Improvement District scheme within the Sandyford Business District in 2017. Sharon Scally is the current chairperson of Sandyford BID CLG which has as its aims to strengthen and promote ties within the local business community, improve infrastructure and promote the Sandyford Business District as the premier destination in Ireland for talent and investment.

The Awards reception and proceedings were held at the Clayton Hotel, Burlington Road, Dublin 4 and charity partners for 2018 include the Solicitors’ Benevolent Association, The Barristers’ Benevolent Society and the Peter McVerry Trust.  Further information about the awards and other winners are available at www.irishlawawards.ie .

Sharon Scally Winner at the Irish Law Awards 2018

Amorys Solicitors Team - Winner at the Irish Law Awards 2018

Photographer Paul Sherwood paul@sherwood.ie; 087 230 9096 www.sherwood.ie
Clinch Wealth Management Irish Law Awards, Clayton Hotel, Burlington Road, Dublin. May 2018.

Whilst every effort has been made to ensure the accuracy of the information contained in this article, it has been provided for information purposes only and is not intended to constitute legal advice. Amorys Solicitors is a boutique commercial and private client law firm in Sandyford, Dublin 18, Ireland.
For further information and advice in relation to “Sharon Scally named Sole Principal of the Year at the Irish Law Awards 2018”, please contact Deirdre Farrell, partner, Amorys Solicitors deirdre@amoryssolicitors.com, telephone 01 213 5940 or your usual contact at Amorys.

Extracting a Grant of Probate in Ireland from Abroad

If you have been appointed executor in a Will of a deceased person who had property in Ireland and you live abroad below are some things you will need to do before extracting a Grant of Probate in Ireland, if required.

  1. Obtain the original Will

First of all, in order to extract a grant of probate in Ireland, you will need the original will.  As is frequently the case, a deceased may die leaving assets in multiple jurisdictions but might have only one Will dealing with assets worldwide.  In such a situation you will more than likely need to first apply for a grant of probate (or equivalent thereto) in the country with which the deceased had the most permanent connection, usually called the ‘country of domicle’ but it could also be called the country in which the deceased was ‘habitually resident’ if s/he had a connection to those member states of the EU which had subscribed to the EU Succession Regulation.  The matter of the application of the EU succession regulation to each particular case where a deceased died leaving assets in several jurisdictions will need to be decided on carefully with the benefit of expert legal advice.

  1. Complete a Schedule of Assets of the Deceased

Assuming a grant of probate in Ireland is required, you will need to complete and submit an Inland Revenue Affidavit or a CA24 to the Irish Probate Office with your application for a grant of probate.  The Inland Revenue Affidavit includes a list of all of the assets and liabilities of the deceased in Ireland and elsewhere as of the date of death.  It also seeks information about the beneficiaries and other matters.  This is the document which takes the most time to complete as if there are numerous beneficiaries it can be time-consuming to find the necessary information to complete this document. Guidelines on how to complete this form are available here.

  1. Land/Property in Ireland

In order to complete the Inland Revenue Affidavit you will need to see evidence of the deceased’s interest in land in Ireland.  In Ireland, property is either Registered Land – in which case there exists a document called a ‘folio’ which would have the deceased’s name on it (unless it is held under a trust or is owned by a wholly owned company of the decased), and would constitute conclusive evidence of the deceased’s title – or Unregistered Land – in which case the property will be held under a deed of conveyance, a lease, an assignment (of a leasehold interest) or a deed of assent (this is a deed which records transmission on death).

You should obtain an original or a certified copy of all folios, leases, deeds of conveyance, assignments and assents, where appropriate in respect of each property owned by the Deceased in Ireland as of the date of death.  The information in the relevant documents would be necessary to complete the Inland Revenue Affidavit.

  1. Bank Accounts

 You will need Certificates of Balances as of the date of death in respect of each bank account owned by the deceased in Ireland as of the date of death.  Once you inform the financial institution of the death, after having provided an official death certificate, a Certificate of Balance should issue to you.

  1. You will need an Original or Certified Copy of the Death Certificate or Interim Death Certificate

Apply to obtain a copy of the death certificate by following this link. There is a small charge for the death certificate which is €40 at the time of writing.

If the issue of a death certificate depends on the outcome of a Coroner’s Report, you can apply to the Dublin Coroner’s Office for an interim death certificate.  The interim death certificate should issue free of charge.

  1. Irish Resident Beneficiaries

 In the Inland Revenue Affidavit you will need to state the name, address and PPS Number of each Beneficiary of the estate who is likely to inherit €16,800 or more.  Usually, the beneficiaries are named in the will but other personal information might not be known.  Non-Irish resident beneficiaries might not have PPS Numbers and they may need to apply to the Department of Social Protection for one which could take up to 12 weeks which would delay your application to the Probate Office.  An application for a grant of probate is incomplete without a PPS number for a non-Irish resident beneficiary and will not be accepted.  It is therefore important for you to obtain PPS Numbers of Beneficiaries at the outset where possible.

  1. Non-Irish Resident Beneficiaries – Requirement to Appoint a Practising Solicitor in Ireland

If you as executor are non-Irish resident and you have no co-executors who are, prior to submitting your application to the Probate Office, you will need to appoint a practising solicitor in Ireland to act as a tax collection agent for any capital acquisitions tax arising on inheritances to be received by a non-resident beneficiary – see section 45AA and section 48(10) of Capital Acquisitions Tax Consolidation Act 2003 (as inserted by Finance Act 2010) -.  The solicitor, as tax collection agent, will be secondarily liable to pay inheritance tax on the non-Irish resident beneficiary’s benefit and various procedures to apply before s/he can release the benefit to the beneficiary entitled.

 8.Foreign Assets and Foreign Estate/ Inheritance Tax

 Taxation on death differs from country to country.  Some countries levy a charge on the assets of the estate on death (such as in the United Kingdom) and other countries (including Ireland) levy a tax on inheritances received by beneficiaries. See here for Revenue Outline of inheritance tax in Ireland.

A foreign tax liability should be included in the Inland Revenue Affidavit if it arises on the date of death and if it is charged to the estate.

A common situation is the following: a deceased dies domiciled in Ireland leaving assets both in Ireland and in the United Kingdom.  A tax liability arises on the assets of the estate in the UK on the date of death and interest thereon accrues from 6 months thereafter.  The executor is unable to access funds in the estate either in Ireland or the UK to discharge the UK tax liability because a grant of probate in Ireland (and consequently in the UK) has not yet issued.  Even when an Irish grant of probate has issued, a UK grant of probate is required to access funds there.  Due to the current delays in processing grants of probate in Ireland, it is often the case that grants of probate do not issue within six months of the date of death and interest on late payment of tax in the UK is incurred.  There is at present no way of avoiding liability for payment of interest in this situation.

Whilst it is outside the remit of this article, an executor should be aware that if a tax liability arises both in Ireland and in another jurisdiction in respect of the same asset one of the 74 double taxation agreements between Ireland and 74 other countries (see Revenue Commissioner’s list here ) might operate to relieve a beneficiary of some or all of the burden that arises.

In summary whilst being appointed an executor in a Will is an honour it is not without its responsibilities.  Not only does an executor need to ensure that the Inland Revenue Affidavit is complete s/he then needs to distribute the assets of the estate amongst the beneficiaries according to the terms of the Will which can be difficult in contentious situations. An experienced solicitor in probate matters would assist an executor in corresponding with beneficiaries, various lending institutions and tax authorities to acquire the information necessary to complete the Inland Revenue Affidavit, and would collect and distribute assets of the estate according to the terms of the Will.  A solicitor would assume the role of Irish Resident Agent for inheritance tax purposes if necessary.

Whilst every effort has been made to ensure the accuracy of the information contained in this article, it has been provided for information purposes only and is not intended to constitute legal advice. Amorys Solicitors is a boutique commercial and private client law firm in Sandyford, Dublin 18, Ireland.
For further information and advice in relation to “Extracting a Grant of Probate in Ireland from Abroad”, please contact Deirdre Farrell, partner, Amorys Solicitors deirdre@amoryssolicitors.com, telephone 01 213 5940 or your usual contact at Amorys.

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