The law in England and Wales is moving a step closer to treating married and unmarried couples in a similar way.

“Over 3.5 million couples live together without getting married or entering a civil partnership, a number that has more than doubled over the past three decades. Despite this, cohabiting couples and their children have very limited financial protections should a relationship end.”

So says the foreword to A fairer end to relationships, a 100-page paper from the Ministry of Justice that makes proposals on divorce for married couples and civil partners, and separation and intestacy for unmarried couples in England and Wales. The most significant proposals are those affecting unmarried couples, for whom there is currently much less legal protection than for married couples. For example, while intestacy rules start with the surviving spouse as the main beneficiary, the survivor of an unmarried couple is ignored.

The new regime for unmarried couples would automatically apply to adults in “long-term, committed and interdependent relationships” who have lived together for at least three years or live together and share a child. However, there would be an option to opt out where both parties agree, subject to certain safeguards.

Under the proposed framework, the starting point would be that each person keeps what they legally own. The court would then consider the parties’ needs, with the aim that these should be met in a way that enables both parties to “transition to independence… as far as resources allow”. This limited definition of needs would mean that cohabitants cannot receive a more favourable outcome than spouses in comparable circumstances. Children’s welfare would be the primary consideration of the court, ensuring their welfare is protected where resources are limited.

While the settlement mechanisms would be similar to those currently applying on divorce, the goal would be to achieve a clean break wherever possible, with maintenance limited to exceptional circumstances, such as long-term ill health.

On intestacy, the proposal is that rights of inheritance should be extended to ‘qualifying cohabitants’. The minimum duration for qualification would not necessarily be the same as applied on separation and might be longer.

If you are in an unmarried relationship, do not wait for the law to change, which could take years – if it happens at all. Make sure your legal and financial planning works within the existing legal framework, which does not recognise common-law marriage.

If you’re in an unmarried relationship and would like to understand how the current rules could affect you, your partner and your wider financial plans, our team is here to help. Get in touch by emailing info@ssfs.co.uk to arrange a conversation about your financial planning and how you can protect your interests within the current legal framework.

The Financial Conduct Authority does not regulate will writing or estate planning advice.