Cohabiting Couples and the Law

Official statistics show that there is a rise in cohabiting couples. This has risen from 14% in 2001 to 17% in 2011 (Office for National Statistics). So why, if trends show an increase, has the law to protect cohabitants not changed?

It seems to be a mistaken belief that cohabitants have the same rights as married couples. This is not the case.

People who live together without marrying have very few rights in the UK. This can be shown when the relationship breaks down, but also if one of the cohabitants passes away without leaving a will.

There has been a lot of discussion about the rights for cohabiting couples in recent years. There are many arguments stating that reform is needed to reduce the hardship that can arise a from relationship breakdown.

There has been a Cohabitation Rights Bill drafted which has had its first reading at the House of Lords. It proposes a reform of the current rights of cohabitants. Among other things, it will allow an individual to apply for a financial order against his or her former cohabitant when the relationship breaks down; but certain criteria will need to be met.

However, as it stands, there is currently no law specifically governing cohabitants. One way to try and protect your assets, if unfortunately the relationship broke down in the future, is a cohabitation agreement. The agreement sets out what would happen financially if you did split up. It is simply a record of what you have agreed about how you will own and share things. It ensures that if your relationship ended, neither party would lose out financially (unless that is what you had agreed). All couples who live together would benefit from making one.

If you would like to discuss making a cohabitation agreement then please contact our Family Department.

Another consideration is inheritance. When one half of a married couple dies, if their estate passes to the surviving spouse then there is no Inheritance Tax to pay. Couples who live together do not have that benefit, so Inheritance Tax would be payable if the estate is worth over £325,000.00

New provisions are to be introduced in October by the Inheritance and Trustees’ Powers Act 2014. This act changes the law on intestacy (where a person dies without a will). The law commission had also proposed changes to be made on inheritance and cohabitants. The Inheritance (Cohabitants) Bill was drafted as an addition to the 2014 Act however this has been rejected. It is therefore vital that if you wish to provide for your cohabitant on your death, then a will is essential.

If you would like some advice on making a will or have any questions in relation to above, then please contact our Wills & Estate department.

If you are looking to buy a property with your partner and want to discuss ownership, please contact our Conveyancing department.