1. Reforming the law on financial arrangements following divorce or dissolution
The Law Commission’s 2024 scoping report highlighted that the current law on financial arrangements following divorce or the dissolution of a civil partnership can be difficult to understand and does not always provide certainty. To address these concerns, the Government is seeking views on a “codification-plus” approach. This would involve setting out established legal principles, such as the concepts of “needs” and “sharing”, in legislation.
The consultation also considers other possible changes, including the introduction of qualifying nuptial agreements. These agreements would allow couples to make legally binding financial arrangements before marriage or a civil partnership, providing greater clarity about how their finances would be dealt with if the relationship ended.
2. Reforming the law for cohabiting couples who separate
Under the current law, cohabiting couples have limited legal protection when their relationship ends. As a result, one partner may face significant financial difficulties, particularly where they have children or have been financially dependent on the other partner. Women, children and survivors of domestic abuse, including economic abuse, may be particularly affected.
The Government is therefore seeking views on introducing a new legal framework that would provide eligible cohabiting couples with certain rights and protections when they separate. This proposal supports the Government’s commitment to strengthening the rights of women in cohabiting relationships. However, the proposed protections would be more limited than those available to couples who divorce or dissolve a civil partnership.
3. Reforming the law on inheritance for cohabitants when a partner dies without a will
Under the current law, a cohabiting partner does not automatically inherit from their deceased partner’s estate if there is no valid will. This can leave the surviving partner in a difficult financial position, particularly if they shared a home or relied on the deceased partner for financial support.
The Government is seeking views on updating the law to provide better protection for cohabitants in these circumstances. The consultation also considers whether surviving cohabitants should have greater access to financial provision from their deceased partner’s estate.
Why are these three areas being considered together?
These three areas of reform are closely connected because they all concern the financial consequences of a relationship ending, whether through divorce, separation or the death of a partner. By considering them together, the Government aims to develop a clearer and more consistent legal framework that reflects the realities of modern family life and provides appropriate financial protection for those who may otherwise face hardship.