Financial rights when cohabiting - the ‘common-law marriage’ myth
According to the BBC, 3.6 million couples in the UK cohabit, meaning they live together in a relationship without getting married or being in a civil partnership. This means they are at risk financially in the event of separation.
The UK government has recently said it will not be addressing recommendations for cohabitation law reforms in England and Wales.
Under current law you could live with someone for decades, and even have children together or buy a home together, and then simply walk away without taking any responsibility for a former partner if the relationship breaks down. Common Law marriage is a myth, with no legal status.
When married couples separate, the law permits courts to divide property and finances in a manner that is fair to both partners. When unmarried couples separate, even if they have children together, the partners do not have the same rights. If your name is not on a deed or rental agreement, you do not automatically have a right to stay in your home.
You can ask a legal professional or family lawyer to draft a ‘cohabitation agreement’ for you. This sets out your joint intentions for things like finances, property and arrangements for children if you break up or decide to separate. A ‘Declaration of Trust’ can help set out how you want to own a property and in what shares, and cover what happens if you split up.
You can watch the Resolution video ‘cohabitation nation’ through this link: Cohabitation Nation- Resolution.
BBC Radio 4 programme ‘Money Box Live’ recently discussed concerns around cohabitation in England and Wales and what rights separating couples who are not married or in a civil partnership have.
BBC Radio 4: Money Box Live: Cohabitation broadcast 30th November 2022