Top Tips For Cohabiters

FInd out how the rights of the two million couples currently living together in the UK may be about to improve.

One myth that we at the Fool are keen to dispel is that of the "common law wife/husband". If you've ever described yourself as this you should know that such a thing doesn't exist -- not legally at least.

Around two million (roughly one in six) couples currently live together in the UK and of these it's reckoned that six out of ten couples believe they have legal rights as common-law husband and wife. Unfortunately, however, this is far from the truth. Couples that are not married do not obtain rights by living together, no matter how long for. Indeed, most of us have heard a horror story or two regarding couples that have lived together for 20 plus years and then separated, and as the house is in, say, the man's name, the woman is left homeless with no claim to maintenance, the property or pension.

In fact, even if a property were to be bought in joint names, if the owners were not married the law would not view each partner as owning half -- meaning that should they split they'd need to go to court to argue their case.

Happily, things may be about to change. In reforms to be published by the Law Commission (the government's law reform body) this month, cohabiting couples (including same sex couples) who separate are expected to receive similar rights to married couples who divorce. So in the case of a property owned jointly by an unmarried couple, it will be presumed that they own it equally.

And the changes don't end with property. Separating couples may also be able to make claims against their partner for lump sum payments or even a share of their partner's pension. If children are involved, a partner may be able to claim maintenance from their other half. And partners who have given up a career to raise children may be able to claim loss of earnings from their partner too. However it's worth noting that these rights would not be automatic -- partners would still need to go to court to explain why they need maintenance etc, which would be awarded at the courts discretion.

All in all, this looks like a pretty good thing for couples living together -- in particular for those with children. We'll certainly look forward to hearing the reforms in full in a few weeks time, and seeing the government's reaction. However, nothing is set in stone until the government and parliament approves it. And unromantic though it may sound, getting things drawn up (preferably legally) before moving in with someone can let everyone know where they stand, right from the start. So here are some top tips for cohabiters:

If you decide to take the huge decision of moving in together, consider completing a Living Together or cohabitation agreement -- it covers things such as who pays for what, how to raise children etc. and would make things a whole lot simpler should you sadly split up.
If you buy a property with your partner, make sure you specify the share each partner owns in the new home. Consider buying as tenants in common or if you've already purchased your home, speak to a lawyer about the best way to state each person's share.
If you have children, make sure the father's name is clearly stated on the birth certificate(s) or he will not automatically have parental rights.
You should also consider taking out life insurance policies if you have kids, and writing wills.
Make sure you state who you would like your pension to be paid to, should you die (and the same goes for any other employer benefits).

More: How Couples Can Save Money