Unmarried couples in England and Wales may be entitled to enhanced legal protections if they separate or one partner dies, according to proposals from the Ministry of Justice (MoJ). The consultation, open until 14 January 2024, aims to address the current lack of rights for cohabiting partners, who often assume they have similar entitlements to married couples.
Currently, unmarried individuals dying without a will leave their partner with limited automatic rights to inherit assets. Claims under the Inheritance Act are typically expensive, time-consuming and discretionary, with awards capped at what is deemed reasonable for maintenance. This has led to significant financial distress for bereaved partners, as highlighted by cases where shared savings or personal belongings have been lost to their late partner's next of kin.
The MoJ proposals seek to mitigate these hardships, potentially granting surviving cohabiting partners the right to inherit assets under specific circumstances. In the event of a relationship breakdown, one partner may be able to claim a lump-sum payment from the other. These changes would represent a significant departure from the existing system, where many people mistakenly believe in the concept of 'common-law marriage'.
Campaign groups have welcomed the proposals as a crucial step towards protecting vulnerable individuals, particularly those who are widowed or trapped in abusive relationships due to financial insecurity. However, questions remain regarding the necessity of a new system when marriage and civil partnerships already offer comprehensive legal union. Concerns also exist around the practical implementation of such laws, including how individuals might opt out.
The consultation period is the first stage in what could be a lengthy journey towards legal reform. If implemented, these proposals would bring England and Wales more in line with countries like Sweden and Australia, which have similar provisions for cohabiting couples. The potential implications for personal finance and family law are substantial, affecting how assets are divided and inherited outside of traditional marriage or civil partnership.
The government's move reflects the growing recognition of changing relationships in the UK, with an increasing number of couples choosing to live together without marrying. This consultation provides an opportunity for individuals and organisations to contribute to shaping future legislation that could profoundly impact the financial security and stability of cohabiting partners.