What could new rights for unmarried couples mean for your money?
Co-habiting couples in England and Wales could be given more protections if they break up under new government proposals.
By BBC News
New government proposals could give co-habiting couples in England and Wales stronger financial protections if they break up or if one partner dies without a will. The Ministry of Justice launched a 10-week consultation last month on reforms that would change the current legal landscape where unmarried partners have few automatic rights.
Under the proposals, a surviving partner could inherit assets in certain circumstances if their partner dies without a will, and a partner could be entitled to a lump-sum payment if the relationship ends. The new rights would apply to couples who have lived together for at least three years or have a child together, with couples with children qualifying regardless of how long they have lived together.
However, the reforms would not make co-habiting couples as favourable as married couples; for instance, a surviving partner would still face a 40% inheritance tax on assets above £325,000, whereas married partners are exempt. The consultation is considering how to define a "marriage-equivalent" relationship, looking at factors such as living together, sharing finances, and being perceived as a couple by others.
Couples would be able to mutually opt out of the new rights if they meet safeguards such as obtaining independent legal advice and disclosing their financial situation. The consultation closes on 14 August 2026, and no laws have changed yet as the government will consider responses before deciding on legislation.
Currently, there is no statutory framework to assist co-habiting couples in resolving financial matters when relationships end, and common law marriage does not exist in England and Wales. The government's primary focus is putting children first, and the proposed framework is not the same as divorce, focusing on basic needs rather than the standard enjoyed in marriage.
Even if reforms are introduced, marriage and civil partnership will remain legally distinct, and co-habiting couples are still advised to have a will, lasting powers of attorney, and a co-habitation agreement.