‘No, I’m not married. I’m in a civil partnership with my partner!’.
Did you know that the tax implications of marriage and civil partnership are identical? These implications can be very significant. This is because marriage and civil partnership determine the extent and composition of your assets.
We previously wrote about a number of different forms of marriage (The importance of a good prenuptial agreement). This article applies mutatis mutandis to registered partnerships.
Introduction of registered partnerships
Registered partnerships were introduced in our country in 1998. The main aim of this introduction was to enable same-sex couples to formalise their relationship. Since 2001, same-sex couples have been able to get married. Some of the differences that initially existed between marriage and registered partnerships have disappeared over the years. Many heterosexual couples also choose to enter into a registered partnership these days. However, this is often more a matter of personal preference.
Differences between marriage and civil partnership are merely a matter of formality
There are only a few differences between marriage and a civil partnership:
- When you get married, you have to say ‘I do’ to each other. In the case of a civil partnership, this is not a requirement.
- You do not need to go to court to get a divorce if there are no minor children.
- Marriage allows for legal separation, whereas a civil partnership does not. Legal separation is something that is now rarely seen.
- Marriage is recognised throughout the world. In the case of civil partnerships, the situation differs in some countries.
Are you torn between marriage and a civil partnership? Even though marriage may feel different, it is important to realise that the tax and property law implications are the same. The choice between the two is often a purely emotional one.