When relationships end, the emotional impact is immediate. The financial consequences, however, can be just as significant and for cohabiting couples, often far more uncertain. With ongoing cost of living pressures, financial security has become increasingly important, but the current system leaves cohabitants particularly exposed.
The Government has recently launched a consultation on reforms that could significantly change how the law treats couples who live together but are not married. At the heart of this is a long‑standing problem – the law has not kept pace with modern relationships.
More than 3.5 million couples in the UK now cohabit, yet many still believe in the idea of a “common law marriage”. However, in England when cohabiting relationships break down, the law offers very limited protection, and outcomes often depend on complex property and trust principles rather than fairness. The result is that one partner, often the financially weaker, can find themselves with little or no claim, even after many years together.
Under the proposed reforms, cohabiting couples could gain basic financial rights when they separate, particularly where there has been a long relationship, children, or financial dependence. This could include the ability to claim a share in property, such as the family home, giving individuals a more secure financial footing after a breakup.
A major driver behind these reforms is concern about economic inequality and domestic abuse too. Survivors of abusive relationships, especially those who are not married, can face severe financial hardship when leaving. The proposed reforms therefore look not only at introducing new rights for cohabitants, but also at whether Courts should place greater weight on the impact of domestic abuse, including economic abuse, when deciding financial outcomes.
The reforms would also address another significant gap in the current law, what happens when a cohabiting partner dies. At present, if someone dies without a will, their partner has no automatic right to inherit, regardless of how long they lived together. The Government is considering giving cohabitants clearer rights in those situations, helping to prevent additional distress and financial uncertainty at an already difficult time.
Importantly, the Government has made clear that it does not intend to equate cohabitation with marriage. Instead, the aim is to create a distinct, more limited framework of rights that recognises modern relationships while maintaining a legal distinction between married and unmarried couples.
What this means in practice
For unmarried couples who are already living together these proposals could represent a significant shift. If introduced, partners who currently have no legal claim could gain rights to financial support or a share in assets, particularly where one has been financially dependent or has taken on a caregiving role.
For those considering separation, the changes would point toward greater protection and clearer expectations, although they are also likely to introduce new legal tests, such as whether a relationship meets the criteria for eligibility.
More broadly, these changes highlight the importance of planning ahead. Cohabiting couples may increasingly need to think about how they structure their financial arrangements, including ownership of property and any agreements between them.
A note of caution
While these proposals are widely seen as a positive and overdue step, the law has not yet changed. As things stand, cohabiting partners in England remain largely unprotected if a relationship breaks down or a partner dies without a will.
If you are living with a partner, separating, or simply want to understand how best to protect your position, it is important to take advice now rather than wait for reform.
If you would like to discuss putting the right protections in place, you can speak to a member of our Family Team at Loch, who can guide you through your options and help safeguard your financial future.
