Millions of couples living together without marriage face significant financial risks regarding property, finances, and inheritance, a lawyer has warned. Despite proposed legislation that could grant cohabiting partners more rights, the reforms are not expected to begin their parliamentary journey until late 2027 or 2028 at the earliest.
Lack of Legal Protections for Unmarried Couples
Currently, couples who are neither married nor in a civil partnership have no automatic right to inherit upon a partner's death, and there is no legal framework for dividing assets if the relationship ends. Many people remain unaware of these limited rights, leaving them vulnerable.
Beth Kivelä, family law expert at Rayden Solicitors, emphasized the importance of early action: "It is never too early to seek advice from a specialist family lawyer on the steps you can take to establish and clarify your intentions around property ownership and financial contributions in the event of a separation."
Proposed Reforms and Their Timeline
The proposed reforms would grant cohabiting couples who have lived together for a specified period—currently suggested at three years—additional automatic entitlements and rights. However, these proposals are not expected to reach Parliament until late 2027 at the very earliest, leaving couples exposed in the interim.
Kivelä noted, "The financial outcomes for many cohabiting couples when they separate are unfair compared to those of divorced couples in comparable situations." She added that victims of domestic and economic abuse often face a difficult choice: remain in an abusive relationship or separate with no financial security. Children are also caught up in this dilemma, affecting their wellbeing.
What the New Laws Will and Won't Do
Kivelä cautioned that the new legislation will not grant cohabiting couples the same rights as married couples or civil partners. "Cohabiting couples should be under no illusion that the proposed reforms will entitle them to the same rights as married couples; they make it very clear that marriage is to retain a unique status," she said.
Unlike divorce proceedings, there would be no starting assumption of a 50/50 asset split. The court would interpret cohabitants' needs more narrowly and would not take discretionary needs into account. Additionally, the court would impose a clean break as soon as it is just and reasonable, whereas on divorce the emphasis is on the weaker financial party's transition to independence.
Practical Steps for Cohabiting Couples
Under the proposed legislation, couples who have cohabited for at least three years, or who live together and have a child, would receive statutory rights and responsibilities upon separation. However, they would need to lodge a court application within two years of separating for their claim to be examined.
Kivelä advised couples to consider drafting a cohabitation or nuptial agreement: "Drafted properly, a cohabitation or nuptial agreement allows couples to decide for themselves what they consider to be a fair financial outcome on separation in light of their specific circumstances."
