Could cohabiting couples finally get legal rights?

For years, millions of couples have lived together. Some of them believe they have the same legal protections as married people. Yet when a relationship ends or a partner dies, many find out the hard way that the so-called ‘common law marriage’ doesn’t exist in the UK.

But this could be about to change.

The government's considering major reforms that would give cohabiting couples in England and Wales greater financial rights. These changes will potentially benefit more than three million unmarried couples. Scotland already has protections for cohabiting couples, albeit limited, under the Family Law (Scotland) Act 2006.

The proposals have been described as the biggest shake-up of family law in a generation. If they become legislation, the rules could transform the legal position of people who’ve built lives, homes and families together without getting married or entering a civil partnership.

For older couples in particular, the changes could be significant. Many people over 50 choose to cohabit, but not marry, after divorce or bereavement. But not everyone understands the impact their relationship status could have on their finances.

The end of the common law marriage myth?

Surveys repeatedly show that many mistakenly think couples have legal rights through long-term cohabitation. This is the case in some other countries - such as Australia and New Zealand - where cohabitees are recognised as being in a “de facto” marriage.

But this doesn’t exist in England and Wales, regardless of how long a couple have lived together.

The legal gap between being married and unmarried is significant. Married couples and civil partners have established rights when it comes to:

• inheritance;
• pensions;
• property; and 
• financial support. 

Whereas cohabiting couples are left to rely on whatever arrangements they’ve put in place themselves.

This reality often comes as a shock when a relationship ends. One person may have spent years raising children, sacrificing career progression, earnings and pension contributions. Despite these contributions, they may find they have little legal claim to financial assets built up during the relationship. In heterosexual relationships, this is more commonly the woman. 

The situation can be even more difficult following a death. Married couples and civil partners can pass unlimited assets to each other tax-free and share their tax allowances. But unmarried couples don’t benefit from this spousal Inheritance Tax (IHT) exemption. Meaning they may face a 40% tax bill on anything over the standard £325,000 IHT allowance (2026/27).

Also, under current ‘intestacy rules’ - which apply when someone passes away without a will - an unmarried partner won’t automatically inherit if their partner dies. Instead assets will be passed on according to the rules of intestacy. This usually means to the closest living relative.

What are the proposed changes?

The reforms would create a new legal framework for qualifying cohabiting couples.

Under proposals put forward by the Law Commission, couples who’ve lived together for three years or more, or who have a child together, could gain the right to apply for ‘financial remedies’ when a relationship ends.

The proposals wouldn’t treat cohabiting couples in the same way as married couples. Instead, they’d provide a more limited system designed to address any financial disadvantage arising from the relationship.

For example, someone who gave up work to care for children, supported a partner's career, or invested money and time into improving a home they didn’t own, could potentially have legal grounds to claim some money. 

The consultation will also explore whether courts should give greater weight to the impact of domestic abuse. That includes controlling or coercive behaviour or economic abuse, when assessing finances for cohabitants.  

Qualifying couples would also gain automatic inheritance rights if their partner died without a will. 

Can couples opt out of automatic inclusion?

Under the proposed rules, couples would be eligible if they’d lived together for at least three years, or had a child together. 

However, those who didn’t want the new rights could opt out.

This could appeal to older couples with children from previous relationships, who may’ve already arranged their finances and inheritance plans.

To ensure both partners are making an informed decision before opting out, the government is considering safeguards. For example, a written agreement, full financial disclosure and independent legal advice. 

Why do the new rules matter to over 50s?

The topic of cohabiting is increasingly relevant to older generations. It’s older people who tend to have built up more wealth over their lifetime.

Some middle-aged couples deliberately choose not to remarry, many because of:

• concerns about inheritance;
• family dynamics;
• pensions; or 
• protecting assets for children from previous relationships.

However, if a home is in one partner’s name, and that person dies without a will, the surviving partner has no rights. This includes being able to inherit the property or to continue to live in it. Instead, the estate usually passes to children or other relatives, potentially making the surviving partner homeless.

{{main-cta}}

What should cohabiting couples do now?

Any legislation is unlikely to become law until 2028 at the earliest. Until then, if you’re cohabiting, consider taking your own steps to protect your financial future.

• Make a will - this is the most important step. Writing a will gives you the opportunity to set out who your estate should be left to or divided between.
• Keep pension beneficiaries up to date - pension benefits don’t always automatically pass to an unmarried partner. Check that your chosen beneficiary details are up to date. PensionBee customers can do this in their online account (‘BeeHive’).
• Consider a cohabitation agreement - this legal document sets out what happens to property, savings and other assets if the relationship ends. It could help you avoid disputes later on. 
• Review how your home is owned - the way a property is registered can affect what happens if one partner dies. If you're unsure whether you own as joint tenants or tenants in common, seek legal advice. 
• Seek advice if a relationship breaks down - even under the current rules, some financial protections may be available. In particular, where children are involved.

What happens next?

No final decisions have been made yet. And any changes would require legislation to pass through parliament before becoming law.

If you want to have your say, visit the Ministry of Justice website and take part in the consultation before 14 August 2026.

Want to find out more about whether getting married is financially worthwhile? Listen to episode 52 of The Pension Confident Podcast, where our expert guests discuss the benefits and downsides of getting married for your purse strings.

You can also read the full transcript of the conversation.

‍

Emma Lunn is a multi-award winning Freelance Journalist. She’s written about personal finance for 20 years, with a career spanning several recessions and their consequences. Her work has appeared in The Guardian, The Telegraph and MoneyWeek. Emma enjoys helping people learn to manage their money well, in both the short and long term.

Risk warning

As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice. 

Please note that tax rules change regularly, and the actual tax benefits you receive will depend on your individual circumstances. If you’re not sure, please seek professional advice.