Cohabitation Reform: What the New Government Consultation Means for Unmarried Couples

The government has launched a major consultation on cohabitation law — a move that could reshape the financial rights of millions of unmarried couples across England and Wales.

Although cohabiting families are now the fastest‑growing household type, the law has barely changed in decades. Today, couples who live together have no automatic legal rights if they separate or if one partner dies without a will. Many people still believe in the idea of “common‑law marriage”, but in reality, it does not exist in English or Welsh law.

The new consultation, published on 5 June, aims to modernise this outdated system. The government says the goal is “improvement, not parity” — strengthening protections for cohabitants without treating them the same as married couples or civil partners.

Why This Matters

For many families, the current rules can lead to real hardship. When an unmarried couple separates, the financially weaker partner — often someone who reduced work to care for children — may be left with no claim on property, pensions, or long‑term financial support.

If one partner dies without a will, the surviving partner does not automatically inherit, even if they shared a home and life together for decades.

The consultation marks the first serious attempt in 20 years to address these gaps.

What the Consultation Is Looking At

1. Stronger protections for cohabiting couples

The government is exploring whether cohabitants should have clearer rights when a relationship ends, including:

• Fairer treatment where one partner has been financially dependent
• Better recognition of long‑term relationships
• A more straightforward legal process for resolving disputes

2. Inheritance rights

One of the biggest proposed changes is whether unmarried partners should gain automatic rights under intestacy rules — the rules that apply when someone dies without a will.

3. Domestic abuse considerations

The consultation also looks at how courts should take domestic and economic abuse into account when dividing finances for both married and unmarried couples.

4. Legally binding prenups and postnups

The government is considering making pre‑nuptial and post‑nuptial agreements legally binding, giving couples more certainty and reducing disputes.

What This Could Mean for Property and Mortgages

Financial advisers and lenders are already raising questions about how any new rules might affect:

• Joint vs sole ownership
• How long a couple must live together before rights apply
• Whether a sole‑owned home could gradually be treated as a shared asset
• How mortgage applications are assessed when only one partner is named

These issues will need careful clarification as the consultation progresses.

What Couples Should Do Now

Reform will take time, and nothing has changed yet. But there are important steps cohabiting couples can take today:

1. Make a will

Without one, your partner will not inherit automatically.

2. Check pension and life insurance nominations

These do not update automatically — you must name your partner explicitly.

3. Consider a cohabitation agreement

This can set out:

• Who owns what
• How bills and property are shared
• What happens if the relationship ends

4. Review property ownership

Understanding whether you own as joint tenants or tenants in common can make a big difference.

A Significant Moment for Modern Families

The consultation represents a rare opportunity to bring family law in line with how people actually live today. With more couples choosing not to marry, the government’s proposals could offer much‑needed clarity and protection.

The consultation will run for ten weeks, and any changes will take time to implement. For now, advisers and clients alike should stay informed — and ensure existing arrangements provide the protection cohabiting families need.