A Fairer End to Relationships? Government Launches Consultation on Divorce Financial Remedies and Cohabitation Reform

The Government has launched a significant consultation entitled “A Fairer End to Relationships”, proposing some of the most substantial changes to family law in England and Wales for decades. Published on 5 June 2026, the consultation seeks views on reforming financial remedies on divorce, strengthening legal protections for cohabiting couples, and improving inheritance rights for surviving cohabitants. (GOV.UK⁠)

The proposals reflect the Government’s aim to modernise family law, improve certainty for separating couples, and provide greater protection for financially vulnerable individuals and children. If implemented, the reforms could have far-reaching implications for married couples, unmarried partners, and family law practitioners alike.

Reforming Financial Remedies on Divorce

One of the central proposals is the introduction of a “codification-plus” model for financial remedies following divorce or dissolution of a civil partnership. Currently, many of the principles applied by the courts have developed through case law over several decades. While this has allowed flexibility, it has also been criticised for creating uncertainty and unpredictability.

The Government is consulting on placing key legal principles into legislation, including:

• The concepts of “needs” and “sharing”;
• The distinction between matrimonial and non-matrimonial property;
• A clearer statutory framework for determining financial outcomes; and
• A structured approach to assessing housing, capital and income needs.

The aim is to create a more accessible and predictable system while retaining judicial discretion where appropriate.

Binding Nuptial Agreements

The consultation also considers introducing legally binding qualifying nuptial agreements, subject to appropriate safeguards. This could give greater certainty to couples wishing to regulate their financial affairs before marriage or civil partnership, bringing England and Wales closer to the approach adopted in many other jurisdictions.

Domestic Abuse Considerations

Another notable proposal is whether courts should place greater weight on the impact of domestic abuse, including coercive, controlling and economic abuse, when determining financial outcomes on divorce. The Government is seeking views on how such factors should influence financial remedy decisions.

Greater Protection for Cohabiting Couples

Perhaps the most widely anticipated aspect of the consultation concerns the rights of cohabiting couples.

Despite the persistent myth of the “common law spouse”, unmarried couples in England and Wales currently have very limited legal protection when relationships break down. This can create significant financial hardship, particularly where one partner has sacrificed career opportunities to care for children or support the family.

The Government is proposing a new statutory framework for eligible cohabitants that would provide financial remedies upon separation. Importantly, the proposed scheme would be narrower than the regime available to married couples and would preserve marriage as a distinct legal institution.

The consultation suggests that protections could apply automatically to qualifying cohabitants, with an option for couples to opt out if they wish. The Government’s stated objective is to provide protection for vulnerable individuals while recognising the increasing number of families who choose not to marry.

Inheritance Rights for Cohabitants

The consultation also addresses the position of cohabitants when a partner dies without leaving a will.

Under the current law, unmarried partners do not automatically inherit from one another under the intestacy rules, regardless of the length of their relationship. This can leave surviving partners facing considerable financial uncertainty and, in some cases, the loss of their home.

The Government is therefore seeking views on introducing automatic inheritance rights for qualifying cohabitants and improving access to financial provision claims against a deceased partner’s estate.

Why These Reforms Matter

The consultation reflects changing family structures across England and Wales. Cohabiting couples are one of the fastest-growing family groups, and many families remain unaware of the limited legal protection currently available to unmarried partners. The Government’s proposals aim to balance personal autonomy with protection for vulnerable individuals and children at the end of a relationship.

For family law practitioners, the consultation signals a potentially significant shift in how financial disputes following relationship breakdown may be resolved in the future.

What Happens Next?

The consultation is open until 14 August 2026, with responses invited from legal professionals, academics, support organisations and members of the public. Following the consultation, the Government will consider whether legislative reform should be introduced.

While any changes remain some way off, this consultation represents an important step towards reshaping the legal framework governing divorce, separation and cohabitation in England and Wales.

How We Can Help

Relationship breakdown can have significant emotional and financial consequences. Whether you are considering divorce, negotiating a financial settlement, or seeking advice about your rights as an unmarried partner, our Family Law Team can provide clear and practical guidance tailored to your circumstances.

While any reforms remain some way off, there are steps that can be taken now to protect your position, including cohabitation agreements, wills and estate planning. To find out more, please contact a member of our team on 01538 755761 or by email to clientcare@ericwhitehead.co.uk