Cohabitation reform in England & Wales: what clients need to know

The Government has recently published details of a major consultation on reforming the law for unmarried couples who live together.

These proposals are set out in A fairer end to relationships – GOV.UK (June 2026) and represent what could be the most significant shake-up in cohabitation law in decades. 

It is estimated that more than 3.5 million couples in England and Wales live together without marrying or entering a civil partnership. That is a significant portion of the population that could benefit from these reforms, which may provide long-overdue clarity and legal protection currently missing from the legal system. 

This article explains the current law, the key proposals and what they may mean for cohabiting couples.

Why is reform of the current law needed?

Cohabiting relationships have been increasingly popular in recent years. The 2024 figures from the Office for National Statistics (ONS) estimated that around 6.5 million people were living together without marrying, which makes up almost 13% of the adult population. This was an increase of around 12% from the previous decade. 

Despite cohabitation becoming increasingly common in modern family life, the laws in England and Wales have not kept pace. There are no standalone legal protections for cohabiting couples and, depending on the circumstances, the two key laws governing cohabiting relationships are: 

• TOLATA (The Trust of Land and Trustees Act 1996); and 
• Schedule 1 of the Children Act 1989. 

Each piece of legislation is now over 30 years old and, as the statistics show, they were drafted at a time when a far smaller proportion of the population cohabited. Under the current legislation, when cohabiting couples separate, there is:

1. No automatic right to financial support, even in the case of long relationships and where one party has been financially dependent on the other; 
2. No right to share assets, unless they are jointly owned;
3. No automatic inheritance rights if a partner dies without a will and no tax relief available to the inheriting partner; and 
4. No such thing as a common law marriage and no overarching legal framework equivalent to the protections which are available on divorce under the Matrimonial Causes Act 1973 or dissolution of civil partnership under the Civil Partnership Act 2004.

Claims under TOLATA are made in civil proceedings, rather than family proceedings, and involve complex property law and the application of often technical equity and trust principles. Many family lawyers would be forgiven for breaking into a light sweat over them, let alone a lay person. Claims under Schedule 1 of the Children Act 1989 are no less complex and are limited in scope, with financial provision usually ending once the child of the family is no longer a minor. Both routes are often technical, expensive if court proceedings are required, and ultimately poorly suited to resolving family disputes.

The Government’s consultation recognises a significant gap in the law and an inequality between cohabiting couples and their married counterparts. It emphasises that this inequality leaves many people, particularly women or those who take on the traditional childcare or carer role, children, and victims of domestic or economic abuse, at real risk of financial hardship.

What are the proposals?

The consultation proposes a new statutory framework for cohabitants in three key areas:

1. Stronger rights on separation

A new legal framework would apply automatically to eligible cohabiting couples, with the option to opt out by written agreement. Eligibility would likely include couples who have lived together for at least three years, or who have a child together. 

Under the proposals:

• Each partner would normally keep what they legally own. However, the court could depart from this position to meet defined needs. This is not dissimilar to the approach on divorce, although needs would be assessed more narrowly;
• Children’s welfare would be the first consideration. Again, this is already a key consideration under both TOLATA and Schedule 1 of the Children Act, but the proposed framework may allow the law to go further in meeting children’s needs; and
• Maintenance or income support would be available only in exceptional circumstances and would be time‑limited. This is in step with how the courts approach spousal maintenance in a divorce and in both cases, the emphasis would be on achieving a clean break wherever possible.

The proposed reforms would not introduce a mechanism for an equal sharing of all assets, rather a system to prevent clear unfairness where one partner is left economically vulnerable after a long relationship.

2. Rights on death (Intestacy Reform)

Currently, unmarried partners have no automatic right to inherit if their partner dies without a will. Claims can be pursued under the Inheritance Act 1975, but these are limited to maintenance-level “reasonable financial provision” from a partner’s estate, if adequate provision has not been made in a will or under the intestacy rules. There is no wider automatic right to capital provision.

The consultation proposes:

• To extend intestacy rights to qualifying cohabitants, providing the same protections as married couples, to include the inheritance tax benefits; and
• To allow surviving partners to administer the estate of their partner.

These changes aim to prevent surviving partners from facing sudden financial insecurity or having to pursue complex and time-consuming inheritance claims at an already distressing time.

3. Domestic abuse and further considerations

The Government is seeking views on how conduct such as domestic abuse, coercive and controlling behaviour, and economic abuse should be taken into account when determining financial outcomes for both divorcing couples and separating cohabitants. This reflects an ongoing wider commitment to improving protections for survivors of abuse. 

What about opting out?

One of the most misunderstood aspects of the proposals is the opt-out mechanism. It is proposed that couples who do not want the statutory framework to apply to them would be able to formally opt out by written agreement.

The opt-out mechanism would preserve autonomy for individuals who do not wish their relationship to be governed by the reformed laws, while ensuring that adults can make an informed, joint decisions about how they wish to organise their financial lives. It would mean that casual relationships, short-term house shares, or the oft-cited example of university students living together for three years during their studies, would not be caught by the reforms.

How does this compare to existing options?

This opt-out is not too dissimilar to what happens in practice at the moment. Cohabitation agreements are becoming more common with newly cohabiting couples, which typically set out:

• Who owns what;
• How contributions are to be treated; and 
• What should happen if they separate.

The purpose of these agreements is to establish how couples wish to organise their financial lives from the outset and, in the unfortunate event of separation, avoid the time, cost and animosity of a later dispute or, worse, court proceedings. The proposed reforms would sit neatly alongside these agreements, offering a clearer default position for those who, under the current law, do not have one.

Why these reforms matter

For many families, cohabitation is not a temporary stage but a long-term choice, or a circumstance people fall into by not ‘getting around to marrying’. Despite so many couples falling into this relationship category, the current law offers very little protection when relationships end. The intention behind the proposed reforms is to address a significant gap in the law, while creating a mechanism that enables separating couples to resolve financial matters in a far less complex way and, where possible, avoid the need to attend court. 

The consultation remains open to legal professionals, charities, academics and the public, and the responses will inform the development of legislation to be introduced when parliamentary time allows. As these reforms were first mooted in 2007, it is hoped that this will be achieved within this decade. 

Until these reforms are introduced, the key takeaway for individuals in cohabiting relationships is that if you are living with a partner and are not married or in a civil partnership, you do not currently have automatic legal rights, no matter how long you have been together.

If you are in a cohabiting relationship and want to understand your rights under the current law, our Family team can provide clear, practical advice. Contact us today on 0800 011 1195 to book a free initial consultation.