How cohabitation law reforms could affect your pension, savings and inheritance

Millions of unmarried couples in England and Wales could gain stronger legal rights and greater financial security if they split up or their partner dies.

The 'A Fairer End to Relationships' consultation, launched on 5 June, is seeking views on reforms that could affect around 3.5 million cohabiting couples. The proposals would explore changes to how family courts deal with property, pensions and inheritance when relationships break down.

Here, Which? dives into the consultation to explain exactly how these new proposals could impact you if they go ahead.

Rights for cohabiting couples now

If you're not married or in a civil partnership, you don't automatically have rights to your partner's money or property if you split up or they die, regardless of how long you've been together. The main exceptions are child maintenance and assets you own jointly.  

A 2026 YouGov survey of 2,108 UK adults, commissioned by law firm Forsters, found an increased demand for cohabitation rights and confusion over current protections. 

The survey found that 60% of respondents, and 81% of cohabiting couples, believed unmarried partners should inherit assets free of Inheritance Tax (IHT). 

Additionally, 52% stated that unmarried couples with children should qualify for rights within five years of living together. 

People over 65 and those earning £50,000 or more showed the highest support for sharing money and assets after a separation.

• Find out more: the benefits and discounts available to parents.

What has been announced?

The consultation runs until 14 August and is seeking feedback on several proposals:

Property

Right now, courts must use rigid property and trust laws that focus solely on legal titles and financial contributions on paper, which the consultation says often leads to unfair outcomes. 

The proposed framework would allow family courts to adjust property rights to correct financial imbalances caused by the relationship. 

For example, if you gave up work or reduced your earnings to care for children, the court could take this into account when deciding whether financial provision should be made.

Couples would also have the option to explicitly opt out of this framework through a valid legal agreement if they want to.

• Find out more: renting a home: what you need to know.

Pensions

The consultation includes several proposals that could affect how pensions are dealt with when relationships end.

For married couples getting a divorce, the government wants to rewrite complicated court laws to make them clearer and easier to understand.

Under the proposals, the government also wants to introduce agreements called ‘qualifying nuptial agreements’. These would make certain pre and post-nuptial agreements legally binding, provided strict safeguards are met.

To keep these agreements fair, the government will include strict safety rules to ensure both partners are fully transparent about their finances and that neither is pressured into signing.

To stop pensions from being overlooked, which can particularly affect women who often have smaller pension pots due to career breaks when having children, the consultation proposes a specific requirement for courts to consider retirement needs when making financial orders.

The government rejected a default 50/50 split of pensions, warning it could force families to sell their homes immediately, which would harm any children involved.

For unmarried couples who split up, a new system would allow courts to look at a couple's overall money and include pensions – which are often a household's biggest asset – to make sure a partner who sacrificed their income isn't left struggling financially.

• Find out more: how much you need to retire

Inheritance protections 

If your partner dies without a will, you currently have no automatic right to inherit under intestacy rules in England and Wales if you're not married or in a civil partnership. 

The government wants to change this by giving eligible unmarried partners an automatic legal right to inherit, similar to married couples and civil partners. 

The consultation is asking how long a couple should have lived together before qualifying for these rights. It suggests a period of two or five years, or less if they have a child together. 

It is also looking at how to balance any new rights with the interests of children from previous relationships.

• Find out more: inheritance tax: thresholds, rates and who pays.

Savings and bank accounts 

Under current laws, separate bank accounts and savings accounts belong strictly to the person named on the account, regardless of any non-financial contributions to the relationship, such as childcare. 

The new proposals would allow family courts to look at the wider financial impact of a relationship. If the court finds the relationship caused an unfair economic advantage to one partner or a disadvantage to the other, it could order ‘financial provision’. 

This could include financial support where one partner has lost out financially during the relationship. Depending on the circumstances, that could mean a payment from one partner to the other or short-term maintenance.  

• Find out more: should you open a joint savings account?

Protecting victims of domestic abuse

The government is also asking whether domestic abuse should play a greater role in financial decisions made by family courts.

Current law sets a high threshold before a person's conduct is taken into account when deciding financial settlements. The consultation is seeking views on whether domestic abuse, including coercive control and economic abuse, should be given greater weight.

The aim is to help ensure victims are not left at a financial disadvantage because of abuse experienced during a relationship.

These protective measures would also cover both married people divorcing and unmarried cohabitants separating across England and Wales.

• Find out more: financial abuse: how to spot the signs, and where to turn for support.

What about the rest of the UK? 

This consultation only applies to England and Wales. If you live in Scotland or Northern Ireland, different rules apply to cohabiting couples because both have separate legal systems. 

In Scotland, cohabiting partners can already make certain legal claims if they separate or if a partner dies without a will. For example, a court may award a payment if one partner can show they suffered a financial disadvantage during the relationship that benefited the other partner.  

However, cohabiting partners in Scotland still have fewer rights than married couples and civil partners. 

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How to protect yourself now

Because these proposals are only in the consultation stage, it will be a while before any changes become law. 

If you are currently living together but aren't married or in a civil partnership, here are a few things you can do to protect yourself now:

Make a will 

Writing a will allows you to explicitly name your partner as a beneficiary so they're protected after you die. 

You could also consider taking out a life insurance policy. If you die during the policy term, the payout could help your partner cover everyday living costs, pay off debts or meet mortgage payments.

• Find out more: how to make a will.

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Update your pensions

Pensions are usually handled separately from your will. You need to contact your pension provider directly to fill out an ‘expression of wishes’ or a ‘nomination’ form to name your partner as the person who should receive your pension benefits if you die.

• Find out more: what happens to your pension when you die.

Sign a cohabitation agreement

This is a legal document you and your partner sign that clearly outlines how you will handle your money, bills, and property while living together, and how everything should be divided if the relationship ends.

Create a declaration of trust

If you buy a home together, this legal document specifies exactly who owns what percentage of the property and how the sale money will be split if you separate.

• Find out more: joint tenants vs tenants in common.

Open a joint bank account for bills

Setting up a shared account for household expenses makes it easier to track shared costs, but remember that money left in separate accounts still belongs strictly to the account holder.

• Find out more: how to find the best joint bank account.