Couples told ‘never too late’ as millions could risk finances before new law starts

Couples told ‘never too late’ as millions could risk finances before new law starts Unmarried couples living together have been urged to take action Couples who are living together but aren’t married have very limited rights around property, finances or inheritance in the eyes of the law, but many are completely unaware of this. While a new law could be coming into play around 2027 or 2028 that would change things for cohabiting couples, one lawyer is urging people to take action sooner rather than waiting for change. Beth Kivelä, family law expert at Rayden Solicitors, said: “It is never too early to seek advice from a specialist family lawyer on the steps you can take to establish and clarify your intentions around property ownership and financial contributions in the event of a separation. “Drafted properly, a cohabitation or nuptial agreement allows couples to decide for themselves what they consider to be a fair financial outcome on separation in light of their specific circumstances.” Currently, couples that aren’t married or in a civil partnership don’t have automatic inheritance rights when it comes to the death of a partner and there’s no legal framework for splitting assets if you were to break up. However, the new proposals would see people who have lived together for a certain amount of time, currently proposed at three years, to get a few more automatic entitlements and rights. These proposals are only expected to reach Parliament in late 2027 at the very earliest. The expert explained: “The financial outcomes for many cohabiting couples when they separate are unfair compared to those of divorced couples in comparable situations. “Many victims of domestic and economic abuse can also find themselves in the unenviable position of having to choose between staying in an abusive relationship or separating with no financial security. “Children are also often caught up in this dilemma, which can have significant implications for their overall wellbeing.” Beth warned unmarried couples not to be misconstrued as these new laws won’t mean they get all the same rights as married pairs or civil partners. She added: “Cohabiting couples should be under no illusion that the proposed reforms will entitle them to the same rights as married couples; they make it very clear that marriage is to retain a unique status. “Unlike the Court’s approach to a divorce, there would be no starting assumption of a 50/50 split of the assets. The Court would also interpret cohabitants’ needs more narrowly than on divorce and would not take discretionary needs into account. “The proposed reforms would also require the Court to impose a clean break as soon as it is just and reasonable to do so, whereas on divorce, the emphasis is on the ability of the weaker financial party to transition to independence.” Under the proposed new laws, cohabiting couples who have lived together for at least three years or live together and share a child would get statutory rights and responsibilities for when they separate. However, they would need to apply to the Court within two years of the separation for their claim to be considered.