Cohabitation Reform
The Labour Party announced at their party conference that, should they be elected, they would seek to reform the law for cohabiting couples. Cohabiting couples are unmarried couples living together.
According to Resolution there are currently more than 3.6 million cohabiting couples in the UK, making up 18% of the families.
There is a common misconception around the term “common law marriage”. There is no such thing as a common law marriage, and unmarried couples have limited protection when their relationship ends, or when their partner passes away without a Will in place.
The reform would provide couples with greater protection upon separation, especially where one party is a higher earner. Emily Thornberry, the Shadow Attorney General, stated that the reform would give women in particular increased rights when accessing financial support following the breakdown of their relationship. She further explained that the reform would mean women in unhappy or abusive relationships would feel they have more financial security to enable them to leave the relationship.
Until there is such a reform, unmarried couples should consider entering into a Cohabitation Agreement. A Cohabitation Agreement is a document setting out the couple’s agreement as to how they share their finances while living together, and what happens in the event of their separation. It can include who pays the rent/mortgage and utilities, what happens with joint bank accounts, how property purchased prior to or during the relationship should be dealt with and arrangements for pets. Couples wishing to enter into a Cohabitation Agreement should have full financial disclosure of their partner’s assets and income and should seek legal advice.