Cohabitation Law Reform: Could Unmarried Couples Have Greater Financial Protection When They Separate?

After a consultation in June 2026, the Government is proposing significant changes to the law affecting unmarried couples who live together, potentially providing cohabitants with greater financial protection when their relationship ends.

What is the current law for unmarried couples?

A common misconception is that couples who live together for a certain number of years automatically acquire the same legal rights as married couples. This is often referred to as the “common law marriage” myth. In reality, there is no equivalent statutory framework to that of married couples for dividing finances upon separation and cohabiting couples have access to very limited financial provision as a result. Disputes over finances and property are generally dealt with under property law which may not adequately reflect the financial sacrifices or unpaid childcare responsibilities undertaken by one partner during the relationship.

What changes is the Government proposing?

The Government proposes that a needs-based approach to financial provision should be adopted to achieve the fairest outcome for cohabitants. Children's needs would come first to ensure they are not disadvantaged. The next consideration would then be the individual's own financial needs. The aim would be to ensure that each person can secure suitable housing and meet living costs. In assessing those needs, the court could take into account the standard of living during the relationship to better recognise that a committed relationship often shapes financial arrangements and future expectations. Furthermore, when assessing needs, a new compensation factor would be considered.  This would allow the court to consider decisions made during the cohabiting relationship that might have affected a person's financial position, such as reducing working hours to care for a child and compensating an individual for this sacrifice upon separation.

Under this approach, qualifying cohabitants would be covered by the statutory framework by default but can choose to opt out of these rights and protections if they mutually agree to do so. The Government asserts that a key advantage of an opt-out scheme is that protections automatically apply to individuals who may otherwise be left unprotected. However, for those who do not wish to form a cohabitation agreement, their choice to opt out of the statutory framework will be preserved.

It is important to note the caveat to these reforms however. Cohabiting couples would need to satisfy the eligibility criteria of the proposed statutory framework before they could access the rights and protections it offers. These protections are only intended to extend to relationships where there is a clear demonstration of commitment.

What could these proposed reforms mean for cohabiting couples?

If introduced, these reforms could provide greater security for cohabitants who have made financial or personal sacrifices during a relationship. They could help to reduce disputes, prioritise achieving a clean break as early as possible and grant the court access to a broader set of remedies which reflect what is available on divorce. It will be interesting to monitor the progress of these reforms and observe any future legislation that may be enacted.