New Proposals to Reform Cohabitation Rights: A Fairer End to Relationships?
Posted on in Dispute Resolution
As of June 2026, the Government has launched its consultation aimed at strengthening the rights and protections available to cohabitants. Described as introducing a "fairer end to relationships", the proposals seek to modernise the legal framework governing cohabiting couples on both separation and intestacy.
The proposed changes come as the number of couples choosing to live together without marrying or entering a civil partnership continues to grow, yet the law has struggled to keep pace. Many couples continue to assume that long-term cohabitation creates legal rights equivalent to marriage - the well-known “Common Law Marriage Myth” - however, the reality is the current framework offers limited protection and significant uncertainty for cohabitants. The consultation therefore seeks to address this gap and bring much needed clarity surrounding the division of housing and financial resources following separation or intestacy.
The Current Framework: Separation
Cohabitants do not benefit from the same financial remedies that are available to married couples or civil partners when a relationship ends. Unlike divorce or the dissolution of a civil partnership, there is no statutory framework allowing the court to redistribute assets or make financial provision simply because the parties have lived together for a particular period of time.
Instead, disputes between former cohabitants (where no children are involved) are generally determined under the ordinary principles of property and trust law, often through claims under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA). These disputes can be costly, uncertain and largely driven by property ownership rather than fairness or need. Consequently, cohabitants have access to only limited financial remedies when their relationship ends.
Any claims relating to children may be brought before the court but are limited to financial provision for the benefit of the child or children only.
The Government's Proposal: Separation
To strengthen the financial rights available to unmarried couples on separation, the consultation proposes introducing a new statutory scheme for qualifying cohabitants.
Under the proposals, couples who have lived together for at least three years, or who have a child together, would be able to apply to the court for a lump sum order, property transfer order or pension sharing order following separation.
If implemented, the proposals would represent a significant expansion of the legal rights available to cohabitants. A careful balance must nevertheless be struck, particularly in light of the Government's stated commitment to preserve the distinct legal status of marriage and civil partnership. The consultation makes clear that the proposed framework would be narrower than the financial remedy regime available on divorce, and that cohabitants would not be entitled to a more favourable financial outcome than a divorcing couple in comparable circumstances.
The Opt-Out Model
The consultation also proposes an "opt-out" framework. The proposed scheme would apply automatically to all cohabitants who meet the eligibility criteria unless they choose to opt out, subject to appropriate safeguards, including obtaining independent legal advice and demonstrating that the agreement was entered into freely and without pressure or coercion.
The Current Framework: Intestacy
As it stands, the intestacy rules establish a statutory order of entitlement governing who inherits a person's estate where they die without leaving a valid will. For married couples and civil partners, the estate passes automatically to the surviving spouse or civil partner.
For unmarried individuals, the estate passes to their children (if any) or otherwise to their parents.
The current rules do not therefore recognise unmarried partners, which means a surviving cohabitant generally has no automatic right to inherit from their deceased partner's estate.
This is the case regardless of the length of the relationship or whether the couple have children together.
Instead, an eligible cohabitant's only legal recourse is to bring a claim under the Inheritance (Provision for Family and Dependants) Act 1975, arguing the intestacy rules have failed to make reasonable financial provision. Whilst such claims can be successful, they are uncertain, and awards are often more limited for cohabitants. This is because, unlike spouses and civil partners, who may claim financial provision beyond that required for their maintenance, cohabitants are generally limited to maintenance only.
The Government's Proposal: Intestacy
To address this disparity, the Government proposes extending intestacy rights to qualifying cohabitants. Under the proposed scheme, qualifying cohabitants would automatically inherit where their partner dies without leaving a valid will, provided they had lived together for at least five years, or for at least two years where they have a shared child.
If implemented, this would create a new category of beneficiary under the intestacy rules, making the surviving cohabitant the primary beneficiary of the deceased partner's estate where the qualifying criteria are met. The consultation also proposes aligning a qualifying cohabitant's right to administer the estate with these new inheritance rights, helping to reduce delays and disputes following a partner's death.
The proposals would not, however, place cohabitants in the same position as married couples and civil partners in every respect. In particular, the inheritance tax exemption currently available to spouses and civil partners would not be extended to cohabitants, meaning inheritance tax may still be payable on an inherited estate.
It will also be interesting to see if amendments will be made to the Inheritance Act to allow cohabitants to claim beyond reasonable maintenance, given spouses and civil partners can seek a higher award. However, this does not currently appear to be proposed in the consultation.
Conclusion
With cohabitation now a central feature of modern family life, the Government’s consultation offers a significant opportunity to improve legal certainty and financial protection for unmarried couples. Whether the proposals ultimately deliver a “fairer end to relationships” will depend on how successfully they balance:
- protection for financially vulnerable cohabitants;
- the distinct legal status of marriage and civil partnership; and
- the autonomy of couples who choose not to marry.
What happens next?
The consultation remains open until 14 August 2026. Following its conclusion, the Government will consider responses from legal professionals, representative organisations and members of the public before deciding whether to bring forward legislation.
Those with an interest in cohabitation reform may wish to consider responding to the consultation before it closes; for more information, please visit here.
How Tozers can help?
As a top firm for client satisfaction, we’ve built our reputation on listening first and talking second. We specialise in turning legalese into easily actionable and practical steps, ensuring you feel confident and informed as to your legal position and the options available to you.
If you are currently navigating a separation or would like to better understand your legal options after the death of your partner, please contact our specialist litigation team, who can help you take the next steps with confidence.