Go back to insightsUnmarried Couples: Major Legal Reforms on the Horizon?
The law in England and Wales may be moving closer to recognising the realities of modern family life, with proposals that could give unmarried couples significantly greater legal protection.
According to a recent Ministry of Justice consultation paper, more than 3.5 million couples now live together without marrying or entering into a civil partnership, a figure that has more than doubled over the last 30 years. Despite this growth, cohabiting couples and their children currently have very limited legal protection if a relationship breaks down.
The consultation paper, A Fairer End to Relationships, sets out proposals covering divorce, separation and inheritance. Of particular significance are the recommendations relating to unmarried couples, who currently have far fewer rights than married couples or civil partners.
For example, where someone dies without a valid will, the intestacy rules generally prioritise a surviving spouse or civil partner. An unmarried partner, regardless of how long the couple have lived together, has no automatic right to inherit.
Who would be covered?
The proposed reforms would apply automatically to adults in long-term, committed and financially interdependent relationships who either:
- Have lived together for at least three years; or
- Live together and have a child together.
Couples would be able to opt out of the new arrangements by mutual agreement, subject to appropriate safeguards.
How would financial settlements work?
Under the proposed framework, the starting point would be that each person retains assets they legally own. However, the courts would then be able to consider the financial needs of both parties, with the aim of enabling each person to move towards financial independence wherever possible.
Importantly, the proposals are designed to provide a more limited level of financial support than is available on divorce, ensuring that cohabiting couples would not receive a more favourable outcome than married couples in comparable circumstances.
The welfare of any children would remain the court’s primary consideration, particularly where financial resources are limited.
A focus on clean breaks
While the proposed approach would mirror some of the financial remedies currently available on divorce, the emphasis would be on achieving a clean financial break wherever possible.
Ongoing maintenance payments would be reserved for exceptional cases, such as where one partner suffers from long-term ill health or faces significant barriers to becoming financially independent.
Changes to inheritance rights
The consultation also proposes extending inheritance rights to qualifying cohabitants where someone dies without a will.
The qualifying period for inheritance purposes may differ from that used for relationship breakdown claims and could potentially require a longer period of cohabitation.
Don’t wait for the law to change
While these proposals could represent one of the most significant changes to the rights of unmarried couples in decades, they are not yet law and may take years to be implemented, if at all.
If you are in an unmarried relationship, it is important to ensure your legal and financial arrangements reflect the current law. In particular, many people are surprised to learn that there is no such thing as a “common-law marriage” in England and Wales, regardless of how long a couple has lived together.
Reviewing wills, ownership of assets, beneficiary nominations and other financial arrangements can help ensure your wishes are properly protected under the existing legal framework.
The Financial Conduct Authority does not regulate will writing or estate planning advice.