A Fairer End to Relationships? Government Proposes Major Family Law Reforms

A Fairer End to Relationships? Government Proposes Major Family Law Reforms

The Ministry of Justice has launched a significant consultation that could lead to some of the biggest changes to family law in England and Wales for decades. The consultation, A Fairer End to Relationships, proposes reforms to the way finances are dealt with on divorce, introduces new protections for cohabiting couples who separate, and gives cohabitants greater rights when a partner dies without a will. The consultation is open until 14 August 2026.

These proposals reflect the changing nature of modern family life. More than 3.5 million couples now live together without marrying or entering a civil partnership, yet the law has not kept pace with these changes. If implemented, the reforms could have a profound impact on separating couples and families across England and Wales.

Reforming Financial Settlements on Divorce

The law governing financial remedies on divorce is largely based on legislation that is more than 50 years old. Although judges have developed principles through case law over time, many people find the current system difficult to understand and outcomes can be hard to predict.
The Government is proposing what it calls a “codification-plus” model. In simple terms, this would place established legal principles into legislation, making the law clearer and more accessible while retaining judicial discretion where necessary.
Key proposals include:

• A clear statutory objective of achieving fairness through the principles of sharing and needs.
• A starting point that matrimonial assets should be shared equally unless a different outcome is required to meet needs.
• Clear statutory definitions of matrimonial and non-matrimonial property.
• A structured three-stage approach to assessing needs, with children’s welfare considered first.
• The introduction of binding “Qualifying Nuptial Agreements” (similar to prenuptial and postnuptial agreements) subject to appropriate safeguards.

The consultation also asks whether courts should give greater weight to the impact of domestic abuse, including coercive, controlling and economic abuse, when determining financial outcomes.

For divorcing couples, these reforms are intended to provide greater certainty, encourage earlier settlement and reduce the need for costly court proceedings.

New Rights for Cohabiting Couples on Separation

Perhaps the most significant proposal concerns cohabiting couples.

Despite widespread belief in the concept of a “common law marriage”, no such legal status exists in England and Wales. Living together for many years or having children together does not automatically give a couple the same legal rights as married couples. Yet nearly half of people in England and Wales mistakenly believe that it does.
Currently, cohabitants often have to rely on complex property and trust law to resolve disputes, with very limited financial remedies available.

The Government is proposing a new statutory framework for cohabitants who separate. The proposed scheme would apply automatically to:

• Couples who have lived together for at least three years; or
• Couples who live together and share a child.

There would also be an option for couples to opt out.
Importantly, the proposed framework would not mirror divorce law.

Instead:

• The court would start from the position that each person keeps what they legally own.
• There would be no automatic 50/50 sharing of assets.
• Financial provision would only be available where necessary to meet defined needs.
• Children’s welfare would be the court’s first consideration.
• Maintenance for a cohabiting partner would be available only in exceptional and time-limited circumstances.
• There would be a strong emphasis on achieving a clean break between former partners.

The Government says the aim is to protect vulnerable individuals, particularly women, children and victim-survivors of domestic abuse, while preserving the distinct legal status of marriage.

Inheritance Rights for Cohabitants

The consultation also addresses a long-standing issue affecting unmarried couples when one partner dies.

At present, cohabitants have no automatic right to inherit under the intestacy rules if their partner dies without a valid will, regardless of how long they have been together.

This can create significant hardship, particularly where couples have shared a home, raised children together or built their lives around a shared financial future.

The Government is proposing:

• Extending intestacy rights to qualifying cohabitants.
• Allowing qualifying cohabitants to inherit automatically where a partner dies without a will.
• Giving qualifying cohabitants greater rights to administer a deceased partner’s estate.
• Removing certain eligibility barriers for cohabitants with children who wish to bring claims for financial provision from a deceased partner’s estate.

The proposed model would require cohabitants to meet specific criteria, including minimum periods of cohabitation, before automatic inheritance rights arise. The aim is to provide greater protection while maintaining a distinction between cohabitation and marriage.

The Four Principles Behind the Reforms

Across all three areas, the Government says the reforms are guided by four core principles:

1. Prioritising fair outcomes for children.
2. Protecting vulnerable individuals, including victim-survivors of domestic abuse.
3. Creating a clearer and more accessible legal framework.
4. Preserving the distinct status of marriage.

What Happens Next?

The consultation remains open until 14 August 2026. Responses from legal professionals, judges, academics, support organisations and members of the public will help shape any future legislation. The Government has indicated that any resulting legislation will be introduced when parliamentary time allows. While these proposals are not yet law, they signal a significant shift in how family law may develop over the coming years. For cohabiting couples in particular, the consultation represents the strongest indication yet that long-awaited legal protections may finally be on the horizon.

How Walker Family Law Can Help

Whether you are married, in a civil partnership or living together, understanding your legal position is essential. The law surrounding separation, finances and inheritance can be complex, and the proposed reforms demonstrate that this area continues to evolve.

If you would like advice about divorce, financial settlements, cohabitation agreements or protecting your family’s future, our specialist family lawyers are here to help.