Reform of cohabitation law
A Fairer End to Relationships? – Proposed Reform of Family Law
The Government’s June 2026 consultation, A Fairer End to Relationships, sets out proposals for what could become one of the most significant reforms to family law in England and Wales in decades.
The aim is to create a framework that is clearer, more consistent and better aligned with modern family life, particularly given the rise in cohabiting relationships.
Current Law
Divorce and financial remedies
Financial arrangements on divorce are governed primarily by the Matrimonial Causes Act 1973. Under this regime:
- The court has wide discretion when determining how assets should be divided
- Decisions are guided by the section 25 factors, including:
- The parties’ financial needs and resources
- Contributions to the relationship
- The welfare of any children
Key principles such as “needs” and “sharing” have developed through case law rather than statute. As a result:
- Outcomes can vary significantly between cases
- The law can be difficult for clients to understand without specialist advice
- Predicting likely outcomes at an early stage can be challenging
Cohabiting couples and separation:
The position for unmarried couples is very different. There is:
- No overarching statutory framework governing financial arrangements on separation
- No automatic entitlement to financial support
Instead, cohabitants must rely on:
- Property law (primarily under TOLATA 1996)
- Trust and beneficial interest principles
These routes are widely regarded as complex, costly, and unsuited to resolving family disputes. The “common law marriage” myth also remains widespread, with many incorrectly believing that cohabitation gives rise to the same rights as marriage.
Why reform is needed
Family structures have evolved significantly in recent decades, with cohabitation now one of the fastest growing family types. However, the legal framework has not kept pace with these societal changes.
The current position can lead to unfair outcomes for cohabitants. There is no automatic right to financial support on separation, and non‑financial contributions, such as childcare, may not be adequately recognised. This can result in financial hardship, particularly for the economically weaker partner.
While the divorce regime offers flexibility, it can also create uncertainty. Outcomes are often difficult to predict, making it harder to advise clients at an early stage and increasing the likelihood of disputes and associated costs.
There is also growing recognition that economic abuse and coercive behaviour can have lasting financial consequences, which are not always clearly reflected in outcomes under the current system.
Proposed Reforms
The consultation focuses on reform in two key areas in addition to intestacy which you can read more about here.
- Reform of financial remedies on divorce
The Government proposes adopting a “codification‑plus” model, which would:
- Incorporate key principles from case law into legislation
- Retain a level of judicial discretion
- Introduce greater structure and clarity
Key features include:
- A statutory objective of achieving fair outcomes
- Formal recognition of the principles of:
- Needs
- Sharing
- A starting point of equal division of matrimonial property, subject to adjustments to meet needs
- Clearer definitions of matrimonial and non-matrimonial property
The intention is to improve predictability and consistency, encourage earlier resolution of disputes, and reduce contested proceedings.
Qualifying nuptial agreements
The consultation also considers the introduction of binding nuptial agreements.
Under the proposals:
- Pre- and post-nuptial agreements would be legally binding, subject to safeguards
- Likely requirements would include:
- Full financial disclosure
- Independent legal advice
- Safeguards to ensure basic needs are met
This would represent a significant shift towards greater autonomy and forward financial planning.
- Reform of cohabitation law
A key proposal is the introduction of a new statutory framework for cohabiting couples.
This would apply to:
- Couples in a qualifying relationship (likely including those who have lived together for a minimum period or share a child)
The proposed framework would:
- Be narrower than the regime for married couples
- Operate on an opt-out basis
Key principles include:
- Each party retains what they legally own as a starting point
- The court may intervene only to meet defined financial needs
- A strong emphasis on achieving a clean break
Maintenance would be limited and likely to apply only in specific or exceptional circumstances
The aim is to provide a basic safety net, without equating cohabitation with marriage.
Protecting your position
The proposals represent a significant step towards modernising family law and addressing long‑recognised gaps in the current system.
As reform is still under consideration, the current law remains in force. If you would like advice on how this may affect you, please contact us on 0191 232 9547 to speak to one of our family law experts.
