Millions of couples risk finances before new laws arrive, lawyer warns

Couples who live together without being married have very few legal rights when it comes to property, finances or inheritance, yet a surprising number remain completely unaware of this. Although new legislation could come into force around 2027 or 2028 that would transform the situation for cohabiting couples, one solicitor is encouraging people to act now rather than holding out for change.

Beth Kivelä, family law expert at Rayden Solicitors, said: "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.

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy

"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."

At present, couples who are neither married nor in a civil partnership have no automatic right to inherit upon the death of a partner, and there is no legal structure in place for dividing assets should the relationship break down.

However, the proposed reforms would grant those who have lived together for a specified period — currently suggested at three years — a number of additional automatic entitlements and rights. These proposals are not expected to reach Parliament until late 2027 at the very earliest.

The expert explained: "The financial outcomes for many cohabiting couples when they separate are unfair compared to those of divorced couples in comparable situations.

"Many victims of domestic and economic abuse can also find themselves in the unenviable position of having to choose between staying in an abusive relationship or separating with no financial security.

"Children are also often caught up in this dilemma, which can have significant implications for their overall wellbeing."

Beth cautioned unmarried couples against misreading the new legislation, warning that it will not grant them the same rights as married couples or civil partners. She added: "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 the Court's approach to a divorce, there would be no starting assumption of a 50/50 split of the assets. The Court would also interpret cohabitants' needs more narrowly than on divorce and would not take discretionary needs into account.

"The proposed reforms would also require the Court to impose a clean break as soon as it is just and reasonable to do so, whereas on divorce, the emphasis is on the ability of the weaker financial party to transition to independence."

Under the proposed legislation, couples who have cohabited for a minimum of three years, or who live together and have a child, would receive statutory rights and responsibilities upon separation. Nevertheless, they would be required to lodge an application with the Court within two years of separating for their claim to be examined.