The United Kingdom's Ministry of Justice is consulting on proposals that could grant unmarried couples greater rights over each other's assets in cases of separation or death. These potential changes aim to provide a safety net for cohabiting couples, a group currently lacking the legal protections afforded to married couples and those in civil partnerships.
Under current UK law, common-law marriage is not recognized, meaning that upon divorce, married couples typically divide assets equally, while cohabiting couples have no automatic right to such a division. The proposed reforms seek to address this disparity by suggesting that couples who have been together for over three years or share children, and demonstrate an 'enduring family relationship,' could be entitled to a share of assets, even if those assets are held in one partner's name.
Family lawyers have expressed concerns that these new rules, intended to offer protection, could lead to unintended consequences, particularly for younger couples who choose to live together primarily to share expenses rather than as a prelude to a long-term commitment. Mark Chiverton, a senior associate in family law at SA Law, highlighted the challenge in distinguishing between genuine long-term partnerships and relationships based on shared living arrangements due to high rental costs.
"It could be a real grey area for younger couples, where they are each renting but it’s too expensive so they decide to live together," Chiverton stated. "The challenge for policymakers is distinguishing between a genuine, long-term, family partnership, and a relationship that happens to involve you sharing a house together."
The reforms are anticipated to affect individuals as young as 18, including university students and those early in their careers. Data from Rightmove indicates that in 2025, typical rent constituted 44 percent of the average salary, contributing to an earlier trend of couples cohabiting.
Clare Radcliffe, a partner in family law at Mishcon de Reya, noted that the definition of three years can differ significantly for younger individuals compared to older ones. "Three years when you are young and haven’t got children and are just starting out is not the same as three years when you are 35 and in a relationship," Radcliffe said. "Care will be needed to ensure that the identification of potential claimants is not too broad."
These proposals could also impact parents who assist their children financially, such as by helping with a house deposit. There is a potential for a child's partner to make a claim on the equity in a shared home, even if the parental gift was intended solely for the child. "Take the parent of a 21-year-old who gifted money to put down a house deposit so their child could save money on rent after graduating, then after a year the child’s girlfriend moved in," Radcliffe explained. "That parent would have to be alive to these possibilities."
While the proposed law could technically allow claims from individuals who could not have legally married each other (e.g., siblings living together), such claims are unlikely to succeed without evidence of a recognized relationship, such as shared finances, communication, or public acknowledgment. However, complications may arise in cases where friendships evolve into relationships or vice versa, as one partner might exaggerate the duration or seriousness of the relationship.
The consultation on these reforms is ongoing and is set to conclude on Friday. The proposals could be modified or abandoned before becoming law. To protect finances during cohabitation, legal experts suggest considering a cohabitation agreement, similar to a prenuptial agreement, which outlines the division of assets in case of separation. These agreements can cost between £300 and £4,000. The consultation also mentions the possibility of couples opting out of the new rules by mutual agreement, though the process for this remains unclear.
Chiverton advises keeping detailed records of financial contributions and any gifts or loans from parents within a cohabiting relationship to safeguard financial interests.