Financial Rights of Unmarried Couples Living Together

Many couples live together without marrying but it’s important to understand that legal protections for unmarried partners differ significantly from those for married couples. Here’s what you need to know about financial rights of unmarried couples living together.

If you’re not married and decide to separate, you don’t have the same financial rights as married couples. While married couples can claim spousal maintenance or seek division of assets based on “fairness,” unmarried partners must rely on strict property and financial laws. In general, each person keeps what is in their name, and joint assets are divided based on individual contributions and how they are held by law. This can make it challenging for one partner to claim a share of the other’s property unless they have proof of their financial contributions.

Unmarried couples do not have automatic rights to each other’s property, even if they have lived together for many years. Ownership depends on whose name is on the title deeds or lease agreement. This is usually conclusive. If both partners own a property jointly, they’ll likely share ownership based on either joint tenancy (where ownership passes to the surviving partner) or tenants-in-common arrangements (where each partner’s share can be left to someone else in a will). If one partner has financially contributed to the purchase or improvement of a home, but is not on the title, they may need to seek a claim under the Trusts of Land and Appointment of Trustees Act (TOLATA).

The party seeking a larger claim than they hold by law would need to show they have financially contributed to the property (sometimes labour can be taken into account), there must be a common intention (whether expressly agreed in writing or implied), and the person has relied on that common intention to their detriment.

Parents have a legal obligation to support their children financially, regardless of marital status. When a couple separate, whether they are married or unmarried, the child maintenance will be paid by the non-resident parent. It will be based on the paying parent’s income and is paid to support the child’s living expenses, not the financial needs of the other parent. You can come to a family-based agreement or use the Child Maintenance Service (CMS) to agree and arrange the payments.

Parties can also make a claim under Schedule 1 of the Children Act 1989.  Various orders can be made. Child maintenance can be topped up if the paying party’s income is above the threshold of the CMS.  They can likewise make claims for housing or accommodation for the child, school fees, lump sum payments, medical related expenses and other additional support.  This would be for the child or children only, and not for the party making the claim.  The purpose is to ensure the child’s needs are met.

You may be able to claim a share of property if you have proof of financial contributions or if both partners are registered as owners. If you have dependents, you can also make a claim under the Inheritance (Provision for Family and Dependents) Act 1975. This enables you to potentially claim financial support from your partner’s estate if there was a significant financial dependence before their death.

If one partner dies without a Will, their estate will pass according to intestacy laws, typically to their closest blood relatives, excluding the surviving partner. Even if you’ve lived together for decades, an unmarried partner won’t inherit unless specified in a Will.

Without legal status as a spouse, you may have limited rights if your partner dies. You won’t automatically inherit any property or financial assets unless designated as a beneficiary or included in a Will. You could make a claim for financial provision under the Inheritance Act, but you’d need to demonstrate financial dependence on the deceased partner. To avoid this uncertainty, unmarried couples should consider creating cohabitation agreements and including each other in their Wills. Find out more in our article Unmarried Partners Rights After Death.

It is crucial for unmarried partners to have a Will if they wish to leave assets to each other. Intestacy laws do not provide for unmarried partners, so if you or your partner passes away without a Will, any assets will go to the deceased’s next of kin. Having a Will in place ensures that your partner will be protected and that your wishes are respected.

If you are not married, your partner will not automatically be entitled to your pension after your death. To provide for them, you can designate them as a beneficiary on your pension plan, though rules vary by provider. It’s essential to review your pension scheme’s terms and speak with a financial advisor about securing your partner’s position, particularly with workplace pensions or private schemes, to ensure your wishes are honoured.

For unmarried couples, dividing investments after a split follows the general rule that each partner retains assets in their own names. Joint investments are typically divided based on each partner’s contributions, but this can be complex without a formal cohabitation agreement. If you have co-owned accounts, a financial agreement, or investments designated in both names, it is important to consult with a solicitor to assess fair division and ensure clarity about entitlements.

It is a good idea to consider setting up a cohabitation agreement. This will outline each partner’s financial contributions and intentions regarding shared assets. It can include arrangements for property, household expenses, and what should happen in case of separation. If you’ve contributed to a home but aren’t on the title deeds, a Declaration of Trust can legally acknowledge your contributions and confirm your share in the property. Establishing joint ownership, creating wills, and having open discussions about financial contributions and expectations can all help to clarify your rights as an unmarried partner.

For long-term security, these steps are essential to ensure your assets and intentions are respected, providing peace of mind for both partners as they navigate the practical and legal complexities of cohabitation.

As leading family lawyers in Milton Keynes, we can help advise you about how you can protect your rights as an unmarried couple, including considering a cohabitation agreement. In addition to our head office in Milton Keynes, we also have solicitors in Bicester, Watford solicitors, and Central London. Talk to us in confidence and find out where you stand. Get in touch – we’re here to help.

This article is intended for the use of our clients and other interested parties. The information contained in it reflects the author’s view and is believed to be correct at the date of publication. However, it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional legal advice.