Cohabitation reform: why a written agreement could be more important than ever

The Government’s consultation on proposed reforms to the rights of cohabiting couples closes on 14 August 2026. This has prompted considerable debate about how the law should respond when unmarried couples separate.

If you’re part of a couple who lives together, the question you should be asking yourselves is: what can I do now to reduce the risk of a costly dispute if my relationship ends? The proposals on cohabitation reform may eventually give qualifying cohabitants greater financial protection. However, they are not yet law, and any changes would need to be considered by the Government and then pass through Parliament. The current legal framework therefore remains in place.

For couples who are buying a home, making significant financial contributions or building a life together, this is an opportunity to think about your own financial arrangements before problems arise – something that is often overlooked by many.

What happens if you cannot agree?

Under the current law, financial disputes between unmarried couples can be complicated. For example, where a couple jointly owns a property but cannot agree what should happen to it, the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) may provide a route to resolving the dispute. Where children are involved, there may also be circumstances in which an application under Schedule 1 of the Children Act 1989 is appropriate.

These are established legal routes, but they can involve significant time, cost and uncertainty. A dispute that begins with a disagreement about who owns what can become a much more involved legal process.

The proposed cohabitation reforms could provide a new streamlined statutory framework for eligible cohabitants in the future. However, agreeing what should happen in advance now is a much more forward-thinking and sensible approach for couples who live together in committed relationships, all the more so if they have children together.

Agreeing the position while things are good

A cohabitation agreement can be particularly useful as it allows a couple to record their intentions about their financial arrangements while they are still together and able to make decisions jointly.

The Government’s own consultation describes these agreements as potentially covering property ownership, financial responsibilities during the relationship and what should happen if the relationship breaks down.

Depending on the circumstances, an agreement could deal with questions such as:

• Who owns the property and in what proportions?
• What happens if one partner contributes more towards the deposit?
• How should mortgage payments and other outgoings be treated?
• What happens if one person pays for substantial improvements to the property?
• If the property is sold, how should the proceeds be divided?
• What should happen to jointly owned savings or other assets?
• How should financial responsibilities be dealt with if one partner stops working or reduces their hours?
• What provision is to be made for children, especially where one parent is a primary carer and (possibly as a result) in a weaker financial position than the other parent.

These are not necessarily difficult conversations to have when a couple is buying a home or moving in together. They can be considerably harder after a relationship has broken down.

A cohabitation agreement is not just about separation

It is also worth thinking about an agreement as a way of making expectations clear during the relationship.

Couples may contribute to their household in very different ways. One might provide a larger deposit, while the other pays more towards the mortgage or household expenses. One partner may reduce their working hours to care for children, while the other continues to work full-time.

Without a clear agreement, it may not always be obvious how those different contributions should be reflected if the relationship ends.

Putting arrangements in writing does not mean expecting a relationship to fail. It can simply mean making sure both people understand the financial position they are entering.

What if the law changes?

Interestingly, the proposed reforms could make this conversation even more relevant.

The Government is consulting on a framework under which qualifying cohabitants could have certain financial rights when their relationship ends. One of the models being considered would apply protections by default, while allowing couples to opt out by agreement.

If legislation were ultimately introduced along those lines, couples who want their own arrangements rather than the statutory default would have an additional reason to consider documenting their intentions.

It is therefore unlikely that legal reform would make cohabitation agreements obsolete. If anything, it could make having a clear agreement even more important for couples who want certainty and control over their own financial arrangements.

Of course, the proposals may change following the consultation, and it is too early to know what any eventual legislation would look like.

Don’t wait for a relationship breakdown to have the conversation

The closing of the consultation is a useful reminder that the law around cohabitation may be changing. But couples do not need to wait for legislation to decide that it is sensible to put their own arrangements in place.

If you are buying a property with a partner, already living together, contributing unequal amounts to your finances or have children together, it is worth considering whether you have a clear understanding of what would happen if your circumstances changed.

A well-prepared cohabitation agreement cannot eliminate every potential dispute, and its effectiveness will depend on the circumstances in which it is made and its terms. However, taking advice and recording your intentions can provide much greater clarity than relying on assumptions about what the law will provide.

If you would like advice on cohabitation agreements or your legal position as an unmarried couple, please get in touch with our family law team.

Our Legal 500 and Chambers-rated Family law department listen to your needs sensitively and fairly, providing clear, supportive and careful guidance to deliver the best outcome for you.