Cohabiting, where couples live together without getting married, is becoming more common. If you’re one of the 6.8 million people currently cohabiting, it’s worth considering what will happen when you’re gone. Here’s how you can protect your family when you cohabit.

There’s no such thing as a common-law spouse

There’s a belief that living together gives you the same rights as a spouse. Unfortunately, this isn’t true. If you cohabit, you don’t have any automatic right to inherit your partner’s property, no matter how long you’ve lived together. Couples who are married or have a civil partnership can inherit assets, including personal possessions, automatically. This applies even if they haven’t made a will, and there can be some tax advantages, too.

It’s important to remember that while assets include financial investments such as pensions and savings, it also includes personal possessions which might have sentimental value.

Your property rights

If you own a property jointly, it may automatically pass to your partner when you die, depending on whether you own it as joint tenants or tenants in common. However, if your home is only in one person’s name, this doesn’t apply. If your partner bought your home and you moved in, the intestacy rules mean that if they die without leaving a will, their property, including your home, will pass to their children or even their spouse if they aren’t divorced. If that happens, they could force you to leave so they can sell or move in themselves.

You can make a claim on your partner’s estate if you’ve lived together for over two years. However, this can be a lengthy and expensive process, which is the last thing you need when you’ve just lost a loved one.

Inheritance tax

If you’re married or in a civil partnership, you won’t pay inheritance tax on anything you leave to your partner. If you aren’t married, you’ll pay 40% tax on anything over the £325,000 tax-free allowance. This could leave less for you and your children if you have them.

How you can protect your family

All of this might have you thinking you should get married to protect your partner when you’re gone, but you only need to take that step if you’re ready. There are other ways to protect your partner and family when you’re gone.

Draw up a cohabitation agreement

A cohabitation agreement is a legal document stating what happens to your property if your relationship ends. It can include details of who owned what before you moved in together. If you buy a home together, your cohabitation agreement can confirm who paid the deposit and if it was shared. It should also include details of what you want to happen if you split up or one of you passes away. It can act as a pre-nuptial agreement for unmarried couples. Your will must also mirror what the cohabitation agreement says.

Get financial advice

Seeing a financial adviser is a good idea as it helps you plan for your future and give your partner a financial safety net. If you have a pension and life insurance, you can potentially leave your partner a lump sum or an income, depending on the type of pension you have.

It’s a good idea to review what you already have in place and check the paperwork. For example, if you had a company pension and life insurance before meeting your partner, you might have nominated someone else to receive the payment but want to change it now.

Make a will

Whatever your circumstances, making a will lets you decide what happens to your property when you’re gone. You can leave your partner an inheritance and give them the right to stay in your home for as long as they want to, whilst also protecting your children’s inheritance.

If you want to write your will to protect your partner, we can help. Get in touch using the form below or call us on 0116 380 0752.