Millions of unmarried couples living together risk their finances due to a lack of awareness about their limited legal rights regarding property, inheritance, and separation. While a new law is proposed to address these issues, it is not expected to begin its parliamentary journey until late 2027 or 2028, leaving many vulnerable in the interim.
Current Legal Gaps for Cohabiting Couples
Under existing laws, couples who are not married or in a civil partnership have no automatic inheritance rights if a partner dies, and there is no legal framework for dividing assets upon separation. This often leads to unfair outcomes, especially for those with children or victims of domestic abuse.
Beth Kivelä, a family law expert at Rayden Solicitors, stated: “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 Limitations
The proposed legislation would grant cohabiting couples who have lived together for at least three years, or who live together and share a child, statutory rights and responsibilities upon separation. However, couples would need to apply to the court within two years of separation for their claim to be considered.
Kivelä warned: “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.” Unlike divorce, there would be no starting assumption of a 50/50 split of assets, and the court would interpret cohabitants’ needs more narrowly.
Immediate Steps to Protect Finances
Kivelä recommends drafting a cohabitation or nuptial agreement to clarify intentions around property and finances. “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,” she explained.
Such agreements can help avoid the dilemma faced by many victims of domestic or economic abuse, who may feel forced to choose between staying in an abusive relationship or leaving with no financial security. Children are also often affected, with significant implications for their wellbeing.
Key Differences from Marriage
Under the proposed reforms, the court would impose a clean break as soon as it is just and reasonable to do so, whereas on divorce, the emphasis is on the weaker financial party’s transition to independence. The reforms would not consider discretionary needs, unlike in divorce proceedings.
Kivelä emphasized: “The financial outcomes for many cohabiting couples when they separate are unfair compared to those of divorced couples in comparable situations.” Until the law changes, couples must take proactive steps to safeguard their interests.
