Millions of unmarried couples living together could be risking their finances by failing to take action now, as a major law change is still years away from reaching Parliament. While the government has proposed reforms that would grant cohabiting partners automatic rights after three years, the legislation is not expected to start its passage through Parliament until late 2027 or 2028 at the earliest.
Under current law, couples who are not married or in a civil partnership have no automatic inheritance rights if a partner dies, and no legal framework exists for dividing property or savings if they separate. Many are completely unaware of this gap, leaving them vulnerable to financial devastation.
“Solicitor warns millions of unmarried couples risk finances as cohabitation law change not expected until late 2027.”
Beth Kivelä, a family law expert at Rayden Solicitors, urged couples not to wait for the new law to materialise. “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,” she said. “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.”
The proposed reforms, which would require couples to have lived together for three years to qualify, aim to address what Kivelä described as an “unfair” situation. “The financial outcomes for many cohabiting couples when they separate are unfair compared to those of divorced couples in comparable situations,” she explained. She also highlighted the severe impact on victims of domestic and economic abuse, who “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.”
However, Kivelä warned that even after the reforms, cohabiting couples will not gain the same rights as married pairs. “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, where courts often start with a 50/50 split of assets, the new law would have no such presumption. Courts would interpret cohabitants’ needs “more narrowly” and would not consider discretionary needs. The reforms would also impose a “clean break” as soon as it is just and reasonable, whereas in divorce the emphasis is on the weaker financial party.
With the legislative process still years off, Kivelä’s message is clear: couples should not rely on future laws to protect them. The time to act is now.