STEP Welcomes Long Overdue Cohabitation Reform With A Warning

STEP, the professional body for trust and estate practitioners, has responded to the government's consultation on cohabitation reform, welcoming it as a long-overdue step towards fairness, but warns that marriage and civil partnership must remain legally distinct with safeguards in place. STEP supports a needs-based framework but says a poorly defined regime would increase litigation rather than reduce it.

The consultation, A Fairer End to Relationships, closes 14 August 2026 and brings together reform of divorce financial settlements, cohabitant separation rights and cohabitant inheritance rights. STEP supports the aim of clearer, more accessible rules that protect vulnerable families and preserve the distinct status of marriage and civil partnership.

STEP's submission focuses on intestacy and succession law, where cohabiting couples already face significant challenges. In the STEP Barometer 2026, 43% of practitioners named unmarried or cohabiting couples as one of the scenarios most likely to create legal or planning challenges.

Over 3.5 million couples live together without marrying or entering a civil partnership, and many wrongly believe 'common law marriage' protects them. In reality, a surviving cohabiting partner has no automatic right to inherit and is left to pursue a costly, stressful court claim. STEP is calling for a framework that is clear, objective and tightly defined, so reform reduces disputes, financial and emotional distress, rather than adding to them.

Emily Deane TEP, Technical Counsel & Head of Government Affairs at STEP, said: "Too many couples still believe common law marriage protects them and find out only on separation or bereavement that it does not. Reform is well overdue, but it has to be built on certainty."

"The rules on who qualifies must be clear, objective and tightly defined, or they will create disputes rather than settle them. Statutory reform should be seen as a backstop. It is not a substitute for making a clear, professionally drafted will, or for taking advice on how cohabitation affects property, pensions and tax affairs."

Key Recommendations From STEP's Response

The qualifying period should be longer than three years.

STEP believes the government’s proposed three-year minimum duration to become a ‘qualifying cohabitant’ is too short and recommends seven to 10 years, reducing to three to five years where a couple have a child together.

It warns that a short qualifying period could encourage couples to artificially time separations or lease lengths to avoid acquiring legal rights or to rush into commitments before they are ready.

Inheritance rights must clear a high bar of certainty.

STEP supports giving qualifying cohabitants inheritance rights, but says eligibility must be strict and objective, with clear definitions of ‘living together’ included.

Emily added: "While the Law Commission suggests in the consultation that providing cohabitants with narrower rights could increase litigation, we take the opposite view. Under current intestacy rules, spouses and civil partners outrank children, regardless of whether those children are shared or from a prior relationship."

"We are very concerned that giving qualifying cohabitants the same intestacy status as spouses and civil partners could allow someone to inadvertently disinherit children from an earlier relationship simply by living with a new partner for three years. It could be a serious and unintended consequence of the proposed new legislation that will bring more uncertainty and costly litigation than the existing law. Eligibility must be tightly defined, and robust protections are needed for children from previous relationships."

As part of its consultation response, STEP has proposed intestacy rules to bring in stronger protections for children from previous relationships. STEP also flags a gap in the consultation covering deceased individuals with both a surviving spouse and cohabitant (e.g. separated but not divorced), recommending the cohabitant have no automatic right where a spouse survives.

Marriage & Civil Partnership Must Remain Legally Distinct

Marriage and civil partnership are voluntary, deliberate choices available to everyone, so the same legal consequences should not apply automatically to those who have not made that choice. STEP supports improving protections for qualifying cohabitants, subject to strict eligibility criteria and safeguards, while keeping marriage and civil partnership as legally distinct institutions. STEP also highlights the importance of safeguards and the need for opt-out agreements to better protect the vulnerable.

A Safety Net Is Not A Substitute For A Well-Written Will

Independent research from STEP also found that 41% of cohabiting people in the UK do not have a will, compared with 28% of married people. Reforming the intestacy rules provides an important safety net, but is no substitute for a valid and well-written will. The STEP Barometer 2026 found 10% of practitioners had seen cohabiting partners left unprovided for due to poor will writing, and 12% had seen children from previous relationships unfairly excluded.

Reform Should Be Joined Up Across The Law

Inconsistent definitions and rights across family law, succession law and taxation will create confusion and fuel disputes. STEP is calling for a separate consultation on cohabitant tax treatment, which is not covered by this consultation. This should include transferable nil-rate bands, once 'qualifying cohabitant' is defined, so that tax protection is in place. STEP recommends that cohabitants should have the right to transfer nil-rate bands and residence nil-rate bands to one another on the first death to better protect children.

Nina Sperring TEP, STEP member and Partner at Price Slater Gawne, added: "STEP research shows that 41% of cohabiting people in the UK don't have a will, leaving them at risk of being left with nothing and facing a costly legal battle if the worst should happen. While proposed reforms may improve protections for some cohabiting couples, they will not remove the need for a will. If you're cohabiting, speak to a qualified STEP member about making or updating your will, reviewing how your assets are owned and who will benefit from them on your death, and consider whether a cohabitation agreement would be appropriate in your circumstances."