Cohabitation Reform: Stronger Rights for Cohabiting Couples

Carol Toulson, specialist family solicitor at Holmes & Hills, discusses the latest cohabitation reforms and what they could mean for unmarried couples.

On 5^th June 2026, the Government proposed reforms on the law regarding financial arrangements when relationships end in England and Wales. It looks at three areas, financial remedy on divorce and dissolution, inheritance provision for cohabitants on death and most crucially, financial provisions for cohabitants on separation.  

For a long time, unmarried couples have been significantly disadvantaged in terms of their legal rights compared to those that are married or in a civil partnership. When cohabiting couples end their relationships, there is no statutory framework in place to assist in resolving financial matters.  However, these reforms look at providing a framework for cohabiting couples in a long term committed relationship in respect of financial arrangements and their children.

The current law

In England and Wales, common law marriage does not exist. Irrespective of how long a cohabiting unmarried couple live together, have children or share finances, they lack automatic rights to inheritance, property or maintenance if the relationship ends.

A cohabiting couple can make a civil claim under the Trusts of Land and Appointment of Trustees Act 1996 (‘TOLATA’) based on property ownership. Under s14 of TOLATA, the court can determine ownership or use of the property, such as an order for sale, occupation rights or shares.

Within divorce or dissolution proceedings, the family court can award maintenance to the financially weaker party, share pensions or make lump sum payments or property transfers. However, for unmarried couples, the Court’s powers are confined to ownership involved, not any other assets that a couple may have.

If an unmarried couple have children, they can apply for a financial provision for the benefit of the children under Schedule 1 of the Children Act 1989. The court will consider the financial needs of the children as well as the parties income and resources. For married parents, however, the legislation allows a financial provision for the benefit of the child as well as the parents.

What are the proposed changes being considered?

The Government proposals recognise the modern family life. The new framework applies to couples over the age of 18 who have lived together for at least three years and/or live together and share a child together.

In respect of property, under the new rules, cohabitants could apply for a property adjustment order, which is also available to divorcing couples. This means the Court could order a sale or transfer of a property.

The Government’s primary concerns were putting children first. Cohabiting couples who have a child together qualify for the proposed rules irrespective of how long they have lived together.

The proposed framework is not the same as divorce. Needs under the cohabitation proposals focus on basic requirements, rather than the standard enjoyed in a marriage. There is also no presumption that assets are to be shared equally, and it is the unmarried couple’s choice whether they choose to engage in the new framework. Couples in a civil partnership or marriage have to engage in the Court’s jurisdiction.

It is important to note these proposals are in their early stages and under consultation so we do not know what proposals, or when these proposals will become law.

Cohabiting couples currently do not have much protection by the law and there are cases where long term cohabitees find themselves in financial hardship and uncertainty on separation and death without legal protection. Reform to assist is therefore welcomed and must be a good thing.

But what about couples that wish to protect their assets and wish to keep finances separate? Under consultation there is an opt-out option that would allow couples to come to their own agreements.

Are there practical steps you can take to protect you now?

At the time of separation when emotions run high, people’s expectations can change or be unclear. Cohabitation Agreements can provide certainty.  This is a legally drafted document setting out what will happen if the relationship were to end. For example, the agreement can confirm that it is not intended that one party will have or acquire and interest in the other’s property. Often a key consideration when there are family assets or both parties have children from former relationships. Whatever the intentions and circumstances it is worth thinking and discussing your wishes and expectations at an early stage.

Need legal advice? Speak to our family law experts

If you have any queries or concerns in respect of the above, our specialist family solicitors are here to help.