Six million unmarried couples remain without legal protection as cohabitation reform consultation comes to a close

More than six million people living with their partner in England and Wales currently have no automatic rights to their partner’s savings, assets or property if the relationship comes to an end or in the event of death.

On 14th August the governments cohabitation consultation ended, marking one of the biggest upcoming changes to the rights and protections to couples cohabitating in England and Wales. The consultation comes with the number of cohabitating couples doubling over the last three decades.

In latest Government statistics, there are more than six million cohabitating households in England and Wales. Around five million cohabitants have never married, and over a million cohabitants have previously married or had been in a civil partnership.

With the official changes yet to be announced following the outcome of the consultation, cohabitating couples remain one of the most financially and legally exposed household groups.

Despite misconceptions, there is no common-law marriage, meaning that couples who choose to cohabit together have limited protections amongst assets, property ownership and pensions. When cohabitating couples separate, there are also no automatic rights to a partner’s savings, pension, income or other financial assets.

For instance, if a someone has been contributing towards household bills over a long-term period, they have no automatic rights to the home if it is owned independently by their partner.

Property rights are also currently limited and are dependent on ownership or strict property law principles and establishing a ‘Trust’. Under joint ownership, both individuals have rights to the property. Where one partner solely owns a property, the other may face a complex and costly legal battle to establish any right to a share of the home.

Government statistics show that many couples are remaining unmarried through their 20s and early 30s, highlighting a shift in modern relationship households. Increasingly fewer couples are choosing to marry or are delaying marriage, where the changing nature of relationships have strengthened the need for reform.

In addition, more over 50’s are choosing to cohabit rather than remarry when entering new relationships later in life. However, financial stakes may be higher if they own property or accumulated pension, making legal and financial protections especially important.

Eligibility criteria will be determined by the length of time a couple has cohabited, likely three years, as well as whether the couple shares any children together.

During the recent consultation period, the public across England and Wales were encouraged to provide views across financial remedies during divorce and dissolution, financial provisions during separation and inheritance provision for cohabitants in the event of death. The consultation was open for a 10-week period.

Before moving in, cohabitating partners can consider:

• Creating a formal cohabitation agreement, to establish how finances, savings, property and other applicable assets may be distributed following separation
• Creating a will, to clarify how a person's assets will be divided in the event of their death
• Clarify property ownership through a declaration of trust to formalise financial contributions and what will happen in the event of a separation
• Consider life insurance for financial security.

Andrew Ormrod, Senior Associate Family Law Solicitor said: “Due to the myth of ‘common law marriage’ people assume that living together gives them similar rights to marriage, but it does not. Couples can spend years building a life together and still have no legal safety net if that relationship ends or their partner dies. The reality is very different and until the law changes, cohabiting partners remain extremely vulnerable.

“The law has not kept pace with how people form families today, but this consultation is a clear signal from government that the current system is outdated and, in some cases, deeply unfair.

“But it’s important to remember that for now the law remains unchanged and the biggest risk is assuming you’re protected. Until the law changes, couples must take proactive steps to protect themselves.”