New rules could change cohabitation rights

Recent statistics reveal that unmarried couples living together now represent nearly one in five families in the UK. However, despite their growing numbers, many remain unaware of the limitations tied to not being legally married. As highlighted by legal expert Beth Kivelä, “there is no such thing as a 'common law marriage'”, which leads to cohabiting partners having minimal legal rights concerning property, finances, and inheritance if a relationship ends or one partner passes away. This lack of legal protection has severe implications, evidenced by over 85,000 homelessness applications in the last five years due to relationship breakdowns, highlighting the financial and housing insecurity faced by many.

In response to these issues, the government has initiated a consultation that proposes new measures aimed at providing greater legal security for couples who have cohabited for three years or longer, as well as those who share children. The consultation, titled “A fairer end to relationships,” is part of the government’s broader agenda to modernise family law. It runs until 14 August, with potential legislation expected to make its way through Parliament by the end of 2027 or early 2028.

Currently, the legal landscape for cohabiting couples is markedly different from that for married couples. Kivelä explains, “when a married couple divorces, there is a legal statutory framework that empowers the Family Court to make financial orders.” Conversely, the lack of a defined legal framework leaves cohabiting couples struggling with unfair financial outcomes upon separation. The absence of clear guidelines can be particularly precarious for those facing domestic or economic abuse, forcing them into painful decisions while also affecting the wellbeing of any children involved.

The proposed reforms aim to rectify this imbalance by establishing a new statutory framework that delineates rights and responsibilities for eligible cohabiting couples. Under the new rules, couples must have lived together for at least three years or have a child together to qualify for legal protections. Additionally, individuals would need to apply to the Court within two years of separation for their claims to be considered. Kivelä cautions, however, that “cohabiting couples should be under no illusion that the proposed reforms will entitle them to the same rights as married couples”, as marriage retains a distinct status.

Furthermore, the proposed legal structures would not assume an equal division of assets on separation, interpreting needs more narrowly than in divorce cases. Couples would also be subject to a clean break as soon as it is deemed just and reasonable, contrasting the more gradual transition associated with divorce.

To navigate these complexities, Kivelä advises couples to seek legal advice early on. “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.” This proactive approach could involve the creation of a cohabitation or nuptial agreement, allowing partners to define what they consider a fair financial outcome upon separation based on their unique situation.

As the consultation period progresses, it remains to be seen how these proposed reforms will evolve, but they have the potential to significantly alter the landscape of rights for unmarried couples across the UK.