Government looking at legal reforms for cohabiting couples

Could the law be about to change for cohabiting couples, giving them some of the same protections as married couples? Back in 2024, Labour pledged to strengthen the rights and protections of unmarried couples in their manifesto. In February 2025, the Government announced that a consultation on cohabitation rights reforms would take place later this year.

Anna Barrick, Paralegal in Coodes’ Family team, explains the current situation for cohabiting couples and details some of the ways you can protect your assets outside of marriage.

What rights do you have as a cohabiting couple?

There is a common misconception that cohabiting for a number of years, or having children together, means you are effectively in a ‘common law marriage’. This is a myth and until we know more about the government’s potential new reforms, it will remain as such.

Cohabiting couples are not recognised by the legal system in the same way a married couple is. In England and Wales, cohabiting couples are not afforded a lot of the same rights and protections as their married counterparts, particularly when it comes to the end of the relationship.

The Trusts of Land and Appointment of Trustees Act 1996 is currently the only way that cohabiting couples can seek to establish their interest in property.  If agreement cannot be reached then court proceedings can be issued but proceedings under this Act can be difficult, lengthy and expensive.

The process for division of assets and the financial position of the primary caregiver differs between married and cohabiting couples. This has prompted the need for reform in the current legal system.

Unmarried couples can spend decades in a happy and fulfilling relationship without any automatic right to claim or inherit assets in the event of a relationship breakdown or a partner passing away.

Should the relationship end, each party’s assets will remain their own and jointly owned assets will need to be divided. If a couple cannot come to an agreement on how to divide assets, legal assistance can be obtained. Alternatively, if their partner passes away, the surviving person does not have an automatic legal right to the deceased’s estate. However, they could claim against the deceased’s estate in the event they are not named in a will, or if no will exists.

Additionally, in marriage, if one party works reduced hours to take on responsibilities as the main caregiver for their children, the court recognises this as an equally important contribution as that of being the main earner. This is particularly so where there has been a medium to long marriage. In separated cohabiting couples, the less financially sound party, often the caregiver, has no such protections.

What is the government planning to do?

The new legislation being proposed by the government is aimed primarily at supporting the main caregiver of the family, who may have been left in a financially vulnerable situation.

They may be working reduced hours or not working while raising their family. Alongside a reduced income, the caregiver is potentially sacrificing career development, pension payments and savings.

As such, the new reforms are expected to detail greater protections for the weaker financial party in the event of a cohabiting couple separating.

While we cannot know what the eventual reforms will consist of, or indeed if they will come to fruition, there are measures that you could be taking now to protect your assets as a cohabiting couple.

Act now to protect your assets as a cohabiting couple

The first and most important thing you can do is to ensure you have a will in place to meet your loved ones needs and fulfil your wishes should you die. Seeking legal advice to write a will is recommended to ensure it is comprehensive and legally sound. In addition, you can also seek advice on inheritance tax issues as these are different for cohabiting and married couples.

It is worth noting that in addition to your will, if you have a workplace pension or life insurance policy, it is recommended that you nominate a beneficiary.

Secondly, consider entering into a Cohabitation Agreement, also known as a Living Together Agreement. Both parties will need to seek out independent legal advice to organise an agreement as these are binding legal documents that set out the division of assets in the event of a relationship breakdown.

Thirdly, if you own property through a joint ownership arrangement rather than tenants in common, this needs to be legally recorded through solicitors. This sets out how a property is owned and whether it is owned in equal or unequal shares. A party has no automatic right of occupation to a property if it is owned in the other party’s name. Similarly, a party has no automatic right to any equity in the property if they are not a joint owner.

Next steps

Deciding to live together marks a significant milestone in a relationship and can be a very happy time for couples. While nobody likes to consider the possibility of the relationship breaking down, or the death of a partner, these are unfortunately situations which we are asked to deal with all of the time so it is important to be prepared for the future.

Coodes’ Family team can offer advice for cohabiting couples on issues of childcare, finances or property ownership. Additionally, they can help you draft a Cohabitation or Living Together Agreement, declaration of trust or prenuptial agreement. Should you need assistance with drafting a will or contesting a deceased partner’s estate, our Wills and Probate team will also be able to help.

For more information on arrangements for cohabiting couples, contact Anna Barrick by calling 01726 874 762 or emailing anna.barrick@coodes.co.uk. Alternatively, you can fill in the online contact form on our website.