Family law in England and Wales is on the brink of meaningful reform, particularly in relation to cohabitation and financial remedies following relationship breakdown. For couples who live together without marrying or entering a civil partnership, and for those navigating divorce or dissolution, these changes could significantly alter rights, expectations, and legal outcomes.
At Penerley Solicitors, we regularly advise clients across London who are surprised to learn how limited the law currently is when it comes to protecting cohabiting partners. With reform firmly on the policy agenda, it is an important moment to understand where the law stands now and what may be changing.
Despite widespread belief in the concept of a common law spouse, no such status exists in English law. Cohabiting couples do not benefit from the same legal protections as married couples or civil partners, regardless of how long they have lived together or whether they have children.
When a cohabiting relationship breaks down, financial claims are usually determined through a complex mix of property law, trust law, and child-related claims under the Children Act 1989. This often leads to uncertainty, increased legal costs, and outcomes that feel unfair, particularly where one partner has made non-financial contributions such as childcare or supporting the other’s career.
For London-based couples where property values are high and financial arrangements are often more complex, the lack of a clear legal framework can be especially problematic. Disputes over property ownership and financial provision are common, and resolution frequently requires court intervention.
Why cohabitation reform is being reconsidered
There has been growing recognition that the law has failed to keep pace with social change. Cohabitation is now one of the fastest-growing family types in the UK, particularly in urban centres such as London. Many couples choose not to marry for personal or financial reasons, yet still structure their lives in ways that mirror marriage.
The Law Commission has previously recommended reform to provide a clearer and fairer system for resolving financial claims when cohabiting relationships end. These proposals have returned to the spotlight, with renewed political and professional discussion around introducing a statutory scheme that offers basic financial protections while preserving individual autonomy.
Proposed reforms would likely focus on fairness rather than equal sharing, with eligibility criteria based on factors such as relationship length, shared children, and financial interdependence. Importantly, many models include the ability for couples to opt out through a formal agreement.
Financial remedies and divorce reform
Alongside cohabitation reform, financial remedies following divorce remain an area of active debate. While no fault divorce has simplified the process of ending a marriage, disputes over finances continue to be one of the most contentious and emotionally charged aspects of family law.
There is increasing discussion around whether the current discretionary system for financial remedies provides enough certainty for separating couples. Critics argue that outcomes can be unpredictable, leading to increased litigation and costs. Supporters maintain that flexibility allows courts to reach fair outcomes tailored to individual circumstances.
For clients in London, where assets may include property portfolios, business interests, or complex income structures, financial remedy disputes can be particularly intricate. Any reform aimed at improving clarity or consistency would have a significant impact on how cases are advised and resolved.
If cohabitation reform is introduced, it is likely to change how solicitors advise clients both at the start and end of relationships. Cohabitation agreements may become increasingly important, allowing couples to define their financial arrangements clearly and reduce uncertainty.
For separating couples, reform could mean access to fairer financial outcomes without the need to rely on costly and uncertain litigation routes. However, it could also introduce new eligibility tests and evidential requirements, making early legal advice essential.
In the context of divorce, any refinement of the financial remedies framework would place greater emphasis on forward planning, disclosure, and realistic settlement discussions. Clients would benefit from clearer expectations about potential outcomes, but tailored legal advice would remain critical.
The importance of early legal advice
Periods of legal reform often create confusion as well as opportunity. Individuals may assume they have rights that do not yet exist, or fail to protect themselves under the current law while waiting for change.
Whether you are cohabiting, considering separation, or already involved in a financial dispute, understanding your position under the law as it stands today is vital. Proactive advice can help protect assets, manage risk, and reduce conflict, particularly in high-value or emotionally sensitive cases.
At Penerley Solicitors, we advise clients across London on all aspects of family law, including cohabitation agreements, financial remedies on divorce, and complex property disputes between unmarried couples. We combine clear legal advice with a practical and compassionate approach, recognising that family law issues are rarely just legal problems.
Looking ahead
Reform in cohabitation and financial remedies reflects a broader shift towards modernising family law to reflect how people actually live their lives. While the precise shape and timing of change remains uncertain, it is clear that the legal landscape is evolving.
Staying informed and seeking specialist advice will be key for individuals and families navigating these changes, particularly in London’s fast-moving and high-value environment.
How Penerley Solicitors can help
If you are concerned about your rights as a cohabiting partner, are separating from a long-term partner, or need advice on financial remedies following divorce, Penerley Solicitors is here to help.
We offer tailored family law advice to clients across London and beyond, with a focus on clarity, fairness, and practical solutions.
