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Separation and your finances: a guide for cohabiting couples

Navigating a break-up is tricky enough without disputes over money. Here's how cohabiting couples can future-proof their finances
Separation and your finances: a guide for cohabiting couplesPublished on December 9, 2024
  • Cohabiting couples have few legal and financial protections if they split 
  • Drafting a cohabitation agreement can help couples work out how to approach their finances

Christmas can be a pressure cooker for couples. Every January, family lawyers receive an influx of divorce enquiries as enforced family time and high expectations over the holidays take their toll. However, how a separation affects your finances differs significantly depending on whether you are married or cohabiting.

A common misconception in the UK is that the legal system recognises the concept of a so-called common law spouse. Many unmarried couples believe that if they live together, particularly if they have done so for a long time, or have children together, they will be afforded the same financial protections after a relationship breakdown as married couples. This is not the case. 

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