Unmarried couples face growing legal and financial risk as cohabitation rises
Millions of cohabiting couples across the UK are living without the legal protections afforded to married partners, leaving them financially exposed in the event of separation or death, according to family law specialists at Pepperells Solicitors.
Office for National Statistics (ONS) data shows there are now more than 3.5 million cohabiting couples in the UK, accounting for around one in five families. This represents an increase of over 140 percent since the mid-1990s, making cohabitation the fastest-growing family type.
Despite this shift, unmarried couples do not benefit from many of the legal rights automatically available to married couples or civil partners.
From a legal perspective, cohabiting partners have very limited recourse to financial provision on separation, regardless of the length of the relationship. Disputes are often resolved through complex trust and property law rather than clear family law principles, increasing uncertainty, cost and risk.
David Kemshall, operations director at Pepperells and Family Law Expert, said: “Given the way families increasingly live together, with marriage not always being contemplated, many couples are now in long-term cohabiting relationships involving significant financial dependency.
“The law, as it stands, is not adequate to provide sufficient financial provision for parties on separation.”
Pepperells says these weaker legal rights create a significant protection gap for cohabiting couples. Many people assume that the law will provide a degree of fairness or financial provision when a long-term relationship ends, particularly where there has been shared living, joint assets or financial dependency.
In reality, the remedies available to unmarried couples are far more limited than those available to married couples on divorce, leaving many individuals exposed when a dispute arises.
Sarah Maxton, associate solicitor and Family Law Expert at Pepperells (Collaboratively Trained), added: “It is clear that the current law does not provide a sufficiently robust financial remedy for cohabiting couples, even where there has been years of financial reliance and dependency.”
Misunderstanding of the law remains widespread. Research suggests that almost half of adults believe in the myth of ‘common law marriage’, despite it having no legal status in England and Wales. In addition, around 40 percent of adults do not have a valid will, meaning cohabiting partners may receive nothing if their partner dies unexpectedly.
Pepperells warns that this lack of awareness leaves many people particularly vulnerable, especially where one partner has contributed indirectly to a property or relied financially on the other.
Sarah said: “It is imperative that couples who intend to cohabit receive advice on their legal position, particularly where property is being purchased.
“Given the current state of the law, couples should document their intentions clearly. Entering into a cohabitation agreement or setting out interests in property through a declaration of trust can help avoid uncertainty and dispute if separation occurs.”
With marriage rates continuing to fall, pressure is growing on policymakers to reconsider how the law treats long-term cohabiting couples. Some projections suggest marriage rates could decline by around 28 percent by 2050, raising questions about the sustainability of a legal framework that continues to draw sharp distinctions between married and unmarried partners.
Significant differences remain in areas such as inheritance tax, pension entitlement, housing rights and bereavement benefits.
In the absence of reform, Pepperells is urging cohabiting couples to take proactive steps to protect themselves. These include entering into a cohabitation agreement, making clear and up-to-date wills, and seeking legal advice when buying property or making significant financial commitments together.
Pepperells says early legal advice can help couples avoid costly disputes and unexpected financial hardship, particularly where assumptions about shared rights are incorrect.