The Common Law Marriage Myth: What’s Changing?

The UK government has confirmed that it will launch a formal consultation on the legal rights of cohabiting couples later this year - a long-overdue step for millions of families. As the number of unmarried couples continues to rise, calls for legal reform have intensified, particularly around property, inheritance, and financial protection following separation.

Cohabitation:  The Fastest Growing Family Type in the UK

According to the Office for National Statistics (ONS), the number of cohabiting couples in the UK increased from 1.5 million in 1996 to 3.6 million in 2021 - a staggering 144% rise. In 2021, for the first time since records began in 1845, more children were born to unmarried parents (51.3%) than those within a marriage or civil partnership.

Yet despite these societal changes, cohabiting partners in England and Wales still lack many of the legal protections afforded to married couples. In the event of separation or death, the financially weaker party can be left at a serious disadvantage.

Cohabiting couples are often surprised to learn they have no automatic legal rights or claims if they separate.

The Legal and Financial Risks for Unmarried Couples

Many cohabiting couples wrongly believe that living together or owning property jointly gives them the same rights as married couples. In reality:

• there is no automatic right to property or assets if the relationship breaks down

  
  

• unmarried partners are not entitled to spousal maintenance

  
  

• inheritance rights are limited, especially where no valid will exists

  
  

• pension and bereavement benefits often exclude unmarried partners without children

Without proper planning, one partner can be left with no legal recourse—even after a long relationship or shared financial contribution.

Financial Planning Considerations for Cohabiting Clients

Cohabiting couples should take proactive steps to protect their financial futures. Key areas include:

Cohabitation Agreements

A cohabitation agreement can:

• Define ownership of property and other assets

  
  

• Clarify financial responsibilities

  
  

• Provide a plan for separation

Despite their benefits, awareness of cohabitation agreements remains low, and many couples only learn about them too late.

Wills and Estate Planning

If one partner dies without a will, the surviving partner may receive nothing. Estate planning should address:

• Inheritance tax implications

  
  

• Disputed estates from family members

  
  

• Clearly naming each other in wills and life insurance policies

Life Insurance and Beneficiary Designation

Ensure the right person is named on any policies. Failing to do this can result in payment being made to the next of kin rather than a partner.

Pop goes the myth: "Common law marriage" isn’t what you think

Government Action: A Consultation on Cohabitation Law Reform

Reform has been urged for years by legal organisations like Resolution, which argues that the current law leaves too many families financially exposed. Momentum is finally building:

• The House of Commons Women and Equalities Committee previously backed an opt-out scheme for cohabitants, as proposed by the Law Commission in 2007

• In 2024, the Labour Party pledged to strengthen legal protections for women in cohabiting relationships

• Lord Ponsonby, minister for family justice, confirmed that a formal consultation will launch in 2025 to gather public views

• in February 2025, Lord Timpson reiterated in the House of Lords that the government is committed to “an ambitious reform agenda” for unmarried couples

This consultation could lead to sweeping changes in the legal status of cohabiting partners, with implications for everything from family law to financial advice.

Why Reform Is Urgently Needed

The current system often leaves the financially weaker partner - typically women - with no claim to property, pensions, or spousal support. Reform would:

• Create a fairer legal framework for the millions now living as cohabiting couples

• Help protect victims of domestic abuse, who are often financially trapped due to limited rights were their relationship to end

• Ensure children of unmarried parents are not financially disadvantaged

That said, any reform must carefully balance the rights of cohabitants with the distinct legal structure of marriage.

Useful links

• Gov.uk guidance on Making a Will

  
  

• Resolution - Working with Cohabiting Couples factsheet

• Citizens Advice - Living together and marriage - legal differences

  
  

• House of Commons library - "Common law marriage" and cohabitation

The government’s upcoming consultation could reshape legal protections for millions of cohabiting families.

What’s Next?

As debate continues, financial planners, family lawyers, and unmarried couples themselves should stay informed about the progress of the consultation.

If you're in a cohabiting relationship – or working with or helping couples who are - it’s essential to understand the current legal risks and explore protective strategies now.