Proposed rule changes could boost financial security for cohabiting couples

The government this week announced a number of planned reforms that could bring unmarried couples in line with their married counterparts if introduced. These include allowing qualifying cohabiting couples to inherit in the same way as a spouse or civil partner – in terms of how much and their position in the order of entitlement.

The proposals also include new rights for unmarried couples who separate. Providing they have lived together for at least three years – or have children together – they would have similar rights to divorcing couples, such as claims on property and pensions.

Meanwhile, pre-nuptial agreements could be made legally binding, to allow couples to agree ahead of marriage how they wish their finances and assets to be handled in the event of divorce.

The government has opened the consultation and is seeking views on its proposed changes from the public. It will close on the 14 August 2026.

Protections for surviving partners

Currently, the concept of ‘common law marriage’ isn’t legally recognised in the UK which can leave unwed couples financially exposed if proper planning and protection isn’t in place. For example, an unmarried surviving partner would have no entitlement to any of their loved one’s estate unless this wish had been explicitly documented in a valid Will.

If you die without a valid Will, in England your assets are distributed in accordance with the Administration of Estates Act 1925 – so the law decides who should benefit from your assets. These rules — known as the rules of intestacy — set out who inherits, and in what order.

In England and Wales, priority is given first to a spouse or civil partner, then to children (including legally adopted children, but not stepchildren). If there are no close family members, your estate ultimately passes to the Crown.

Niki Patel, Tax and Trusts Specialist at SJP says “Even though the intestacy rules are designed to protect the individual’s family, this can still cause several problems, especially for those who are not married or in a civil partnership. This is because partners have no automatic rights under English Law”.

Will writing involves the referral to a service which is separate and distinct to those offered by St. James's Place. Wills are not regulated by the Financial Conduct Authority.