Cohabiting couples, inheritance and the dangerous myth of “common-law marriage”
The BBC recently published an important article asking: What could new rights for unmarried couples mean for your money?
It tells the story of Amelia, whose fiancé Simon died suddenly in his 20s, just months before their wedding. They had been together for more than seven years and shared a business. But they were not married, and Simon did not have a will.
As a result, Simon’s parents inherited his assets, apart from the house Amelia and Simon had owned as joint tenants. Amelia was left in a legal battle at the very time she was grieving.
Her words are incredibly stark:
“I lost him, and then I lost everything we’d ever built together.”
That sentence captures something I see far too often in my work.
People build lives together. They buy homes, share responsibilities, contribute to mortgages, raise children, support businesses and plan futures. But unless the legal arrangements are in place, the law may not recognise that relationship in the way they assume it will.
This is not an abstract issue
After reading the BBC article, a prospective client contacted us at Laurus because it raised concerns in their own circumstances. They recognised the risk and wanted advice.
That response did not surprise me.
In my experience, many unmarried couples believe that living together for a long period of time gives them some automatic legal protection. Some believe being engaged changes the position. Others assume that if they own a home together, or have shared finances, everything will simply pass to the surviving partner if one of them dies.
Unfortunately, that is not how the law works.
There is no such thing as “common-law marriage” in England and Wales. However committed the relationship, however long the couple has lived together, cohabitation does not give the same inheritance rights as marriage or civil partnership.
That misunderstanding can have very serious consequences.
What happens if an unmarried partner dies without a will?
If someone dies without a valid will, their estate is dealt with under the intestacy rules. These rules decide who inherits.
For married couples and civil partners, there are automatic rights. For cohabiting couples, the position is very different.
An unmarried partner does not automatically inherit simply because they lived with the person who died.
If there are children, the estate may pass to them. If there are no children, it may pass to parents, siblings or other relatives. The surviving partner may receive nothing unless assets were jointly owned in a particular way, or unless they are able to bring a successful claim.
The BBC article explains that Amelia was able to keep the couple’s house because it had been bought as joint tenants. But Simon’s parents were legally entitled to his other assets, including his car, phone, pension and personal belongings. Amelia also said she was unable to recover savings she had transferred into an account in Simon’s name to pay for their wedding.
The emotional impact of that is clear from her account. She described each item being taken as feeling like Simon was being “ripped away” from her again.
From a legal perspective, these details matter. They show that this is not just about large estates or complex tax planning. It can be about clothing, savings, personal items, family memories and the home a couple shared.
The cost of trying to put things right afterwards
Where there is no will, a surviving cohabiting partner may be able to bring a claim under the Inheritance (Provision for Family and Dependants) Act 1975. But that route is not simple.
It can be expensive, slow and uncertain. It also requires someone who is already grieving to enter a legal process at one of the worst moments of their life.
The BBC article refers to another bereaved cohabitant who brought such a claim after losing her partner of seven years to cancer. She reportedly spent tens of thousands of pounds in legal fees to secure a small share of his estate. The process took around a year and had a significant impact on her mental health.
That is something I recognise from practice. Even where a claim is possible, it is not the same as having clear arrangements in place from the outset. Litigation after death is often emotionally charged. Family members may have very different views about what the deceased would have wanted. Costs can escalate quickly.
A properly drafted will can avoid much of that uncertainty.
“We thought everything would pass automatically”
The hardest part is that these situations are often preventable.
People do not usually avoid making a will because they do not care about their partner. More often, they simply assume the law will deal with things sensibly.
I often hear comments such as:
“We thought everything would go to each other.”
“We were planning to sort it after the wedding.”
“We assumed the house arrangements covered it.”
“We didn’t realise our parents or children would inherit instead.”
But the law does not work on assumption. It works on legal status, ownership, nominations and properly executed documents.
That is why cohabiting couples need to be particularly careful.
The Government consultation: a potential change, but not a reason to wait
The BBC article also discusses the Ministry of Justice consultation on proposed new rights for cohabiting couples in England and Wales.
Under the proposals, a surviving partner could become the primary beneficiary of their partner’s estate in certain circumstances if the deceased died without a will. The article explains that this may apply where a couple had lived together for five years, or for two years if they had a child together.
The consultation also looks at possible financial rights for cohabiting couples on separation, including lump sum payments, property transfers or pension sharing in certain circumstances.
These proposals are significant. They reflect the reality that many couples now live together for years, have children together, and build shared lives without marrying or entering into a civil partnership.
But the consultation is only the start of a potentially lengthy process. It is not yet law.
Even if reforms are introduced, they are unlikely to remove every issue. The BBC article notes that cohabiting partners would still not be in the same position as married couples for inheritance tax purposes. It also raises an important practical question: how will the law decide whether a relationship was “marriage-equivalent”?
That could itself create disputes.
For that reason, possible reform should not be seen as a substitute for proper estate planning.
Why a will matters for cohabiting couples
For unmarried couples, a will is one of the most important documents they can put in place.
A will can set out who should inherit, who should administer the estate, and what should happen to personal belongings, property and business interests. It can also help reduce the risk of disputes between a surviving partner and the deceased’s family.
But a will should not be considered in isolation.
Cohabiting couples should also review:
- How their property is owned
- Whether they need a declaration of trust
- Whether pension nominations are up to date
- Whether life insurance is in place and correctly nominated
- Whether business arrangements are properly documented
- Whether a cohabitation agreement would be appropriate
- Whether existing wills need updating after major life changes
These are practical steps. They are not just about money. They are about protecting the person you love from avoidable distress.
The human reality behind the legal rules
What is powerful about Amelia’s story is not simply that the law produced a harsh outcome. It is that the outcome was so different from what many people would expect.
Most people would assume that after more than seven years together, with a shared home, shared plans and a wedding approaching, the surviving partner would have clear rights.
That assumption is exactly the problem.
At Laurus, we see how quickly these issues can move from theoretical to urgent. The prospective client who contacted us after reading the BBC article did so because the article made the risk feel immediate. It prompted the question many cohabiting couples should be asking:
“What would actually happen if one of us died?”
For some couples, the answer will be reassuring because they already have the right arrangements in place.
For others, the answer may reveal a serious gap.
Do not leave this to assumption
The law around cohabitation may change. The Government’s consultation could eventually lead to greater protection for unmarried couples. That may provide an important safety net in the future.
But couples should not wait for reform before taking advice.
If you are living with a partner and you are not married or in a civil partnership, it is important to understand your current legal position. A will, clear property arrangements and properly updated nominations can make an enormous difference.
In my view, this is not about expecting the worst. It is about making sure the person you love is not left exposed if the worst happens.
You can read the BBC article here:
How We Can Help
Living together does not automatically give unmarried couples the same inheritance rights as spouses or civil partners. Without a valid will and clear arrangements in place, a surviving partner may be left with no automatic entitlement to their partner’s estate.
Our experienced Legacy team can advise on wills, property ownership, declarations of trust, pension nominations and wider estate planning to help ensure your wishes are properly recorded and your partner is protected.
If you are cohabiting and would like to review your arrangements or discuss putting the right protections in place, please contact our Legacy Department on enquiries@lauruslaw.co.uk or 020 3146 6300
