Couples who live together without marrying could gain the right to claim a share of their partner's savings, property and other assets if they split up, under new proposals from the Ministry of Justice, family lawyers have said.
The government is consulting on rules designed to create a safety net for cohabiting couples who separate or where one partner dies. Under current law, married couples who divorce typically split their money and property 50-50, but couples who live together without marrying or forming a civil partnership have no such rights, since so-called 'common law' marriage carries no legal weight.
Under the proposals, partners could be told to split the proceeds of a house sale even where the property is owned by only one of them. The government has suggested the rules would apply only to couples together for more than three years, or those who share children, and who can show an 'enduring family relationship.'
Wealth & Personal Finance has heard concerns from family lawyers that the proposals could have unintended consequences for young couples who move in together to save money rather than as the start of a lifelong partnership.
Concerns over young couples and grey areas
Mark Chiverton, senior associate in family law at SA Law, said it could be a real grey area for younger couples who are each renting but decide to live together because it is too expensive to do otherwise. He said the challenge for policymakers is distinguishing between a genuine, long-term family partnership and a relationship that happens to involve sharing a house.
The reforms are set to apply to people as young as 18, covering those at university and starting out in their careers. High rents have pushed some couples to move in together earlier, with typical rent taking up 44 per cent of the average salary in 2025, according to Rightmove.
Clare Radcliffe, partner in family law at Mishcon de Reya, said three years together when young, with no children and just starting out, is not the same as three years at 35 while in a relationship. She said care will be needed to ensure claimants are not identified too broadly.
Risk to parental gifts
The proposals could also affect parents who help their children financially when they are starting out, since a boyfriend or girlfriend could potentially claim a share of equity in a shared home.
Radcliffe gave the example of a parent who gifted money for a house deposit so their 21-year-old child could save on rent after graduating, only for the child's girlfriend to move in a year later. She said that parent would need to be alive to these possibilities.
As proposed, the law could technically allow almost anyone to bring a claim unless they could not have legally married the person they lived with, such as a brother and sister sharing a home. However, a spurious claim from a housemate who was never in a relationship with the claimant would be unlikely to succeed, since a court would look for evidence such as shared bank accounts and expenses, text messages, photographs and statements from people who knew the couple, to establish what is known as 'public awareness' of the relationship.
Complications could still arise for people who started out as friends before forming a relationship, or vice versa, such as in university house shares, since one partner could claim the relationship was longer standing or more serious than it was.
Consultation and how to protect finances
The law has not yet changed, and the proposals could be altered before becoming law or abandoned altogether under Andy Burnham's government, since they were drawn up before the change in leadership. The consultation closes on Friday.
People who want to protect their finances now could consider a cohabitation agreement, similar to a pre-nuptial agreement, which sets out what should happen to a couple's finances if they separate. According to the Law Society, setting one up costs between £300 and £4,000 depending on complexity.
The consultation also proposes that couples could be allowed to opt out of the new rules if both agree, though it remains unclear how this would work or whether it could be applied retrospectively. Chiverton said it is a good idea to keep records of financial contributions made during a cohabiting relationship, as well as any gifts or loans from either partner's parents.
