Parliamentary Debate Reveals Government’s Latest Intentions for Financial Remedies and Cohabitation Law Reform

The Government gave a significant update on Monday, 10 November 2025 in the House of Lords regarding its plans for financial remedies and cohabitation law reform.

Speaking in the House of Lords, Baroness Levitt KC, Parliamentary Under-Secretary of State for Justice, outlined the Government’s comprehensive approach to modernising family law in England and Wales. The announcement signals a major overhaul of how the law treats relationship breakdown across all types of couples.

The common law marriage myth

One of the driving forces behind the reforms is the widespread misconception about cohabitation rights. Baroness Levitt told the House that over 3.5m couples currently live together in England and Wales – more than double the number from 30 years ago. However, many of these couples mistakenly believe they have legal protections under ‘common law marriage’.

The reality is stark: the law does not recognise common law marriage, and when cohabiting relationships end, women and children are often left without financial security. Many couples don’t realise their vulnerable position until it’s too late.

A comprehensive approach to reform

The Government has confirmed that reform will not be piecemeal. Instead, the consultation will address cohabitation reform and financial remedies on divorce simultaneously. This integrated approach recognises that reforms in one area inevitably have implications for the other.

Baroness Levitt emphasised the Government’s determination to bring consistency and fairness across marriage, civil partnerships and cohabitation, whilst ensuring that children remain at the centre of what happens when relationships break down.

What will the consultation cover?

The forthcoming consultation, scheduled for spring 2026, will examine several critical areas:

Cohabitation reform

The consultation will explore how to provide legal protections for cohabiting couples when their relationships end, addressing the current gap in legal rights that leaves many – particularly women and children – financially vulnerable.

Financial remedies on divorce

The Government shares concerns about uncertainty and conflict in the current system of financial provision on divorce. The consultation will explore the challenges identified by the Law Commission regarding how financial matters are resolved when marriages end.

Nuptial agreements

The Government is carefully considering the Law Commission’s 2014 recommendations on pre-nuptial and post-nuptial agreements. The consultation will examine whether, and if so how, such agreements can provide certainty and fairness for both parties whilst protecting children’s interests.

Conduct in financial proceedings

Given that challenging violence against women and girls is a Government priority, the consultation will carefully consider how conduct – particularly domestic abuse – should be treated in financial remedy proceedings.

Children at the heart of reform

Throughout her statement, Baroness Levitt repeatedly emphasised that children will be prioritised at all points in the reform process. This principle will be central to the Government’s consideration of all aspects of family law reform, from cohabitation rights to financial settlements.

Timeline and implementation

As a manifesto commitment, the consultation is guaranteed to proceed and will be issued by spring 2026. However, this timeline raises questions about whether the reforms can be fully legislated during the current Parliament.

Commentary

The announcement represents a bold and ambitious plan to modernise family law across the board. By addressing multiple interconnected issues simultaneously, the Government aims to create a coherent framework that serves all types of families.

Placing children at the centre of reform provides an excellent foundation for building cross-party consensus. If implemented successfully, these reforms could fundamentally improve how families navigate relationship breakdown, whether they are married, in civil partnerships, or cohabiting.

The modernisation of family law is long overdue. As we approach the end of the first quarter of the 21st century, improving family laws will enable family lawyers to better serve the public and help families use both non-court dispute resolution and court services with the expectation that their needs will be better met and their autonomy respected.

Looking ahead

The success of these reforms will depend on several factors:

• whether the consultation generates broad support across political parties;
• how effectively the interconnected issues are addressed in draft legislation;
• whether implementation can be achieved within the current Parliament;
• how well the final framework balances fairness, certainty and child protection.

These reforms have the potential to provide better outcomes for millions of families across England and Wales. Our children and their children deserve nothing less than a family law system that meets modern needs whilst protecting the most vulnerable.