Court of Session rules on cohabitation claim and causation of economic advantage
Background
The pursuer raised proceedings under section 28 of the Family Law (Scotland) Act 2006 following the breakdown of an eight-year cohabiting relationship. During the relationship, she had left secure employment, contributed to the day-to-day running of the defender’s business without pay, and assisted with caring for his children from a previous marriage.
The Sheriff dismissed her claim on the basis that the economic link between her contributions and the defender’s financial gain had not been clearly established. She appealed to the Court of Session.
Key legal issues
The principal issue on appeal was whether the pursuer had established that the defender had derived economic advantage from her contributions and that she had suffered a corresponding disadvantage — and whether there was a causal link between the two, as required by the statute.
The court also considered the scope of its discretion in quantifying an award under section 28(2)(a), which does not require precise valuation in the way that matrimonial property cases do.
Decision of the Inner House
The Inner House allowed the appeal and awarded the pursuer £40,000. It found that she had provided unpaid support that allowed the defender to grow his business and reduce overheads, while also managing family responsibilities that would otherwise have required third-party assistance.
The court clarified that it is not necessary to demonstrate direct monetary enrichment. A contribution that enables the defender to retain or enhance value may be sufficient. The judgment also confirmed that quantification can be broad-brush, and need not match traditional patrimonial assessment.
Conclusion
This decision provides valuable guidance for practitioners advising clients after the end of a cohabiting relationship. It affirms that economic advantage under section 28 can arise indirectly, and that courts retain broad discretion to achieve fairness in light of contributions and sacrifices made during the relationship.