Unmarried couples face new ‘break-up tax’ – how YOU could be left paying for your ex

UNMARRIED couples across England and Wales could soon be hit with a so-called “break-up tax” under new government plans. Exes could gain the right to claim a share of their partner’s cash and property when they split. Ministers have just closed a consultation on shaking up outdated laws that govern cohabiting couples. The changes could mean your ex has a right to your money even if you never married. Sign up for the Money newsletter Thank you! Nearly half of Britons wrongly believe living together for years gives the same rights as marriage. In reality, unmarried partners currently have almost no automatic legal protection if things go wrong. Yael Selig, a family law specialist at Osbornes Law, said: “The law currently gives cohabiting couples very little protection if they separate.” Under the new plans, couples together for at least three years, or who share a child, would be covered automatically. They could only avoid this if both partners specifically agree to opt out. If a break-up leaves one partner unable to afford basic housing or living costs, courts could step in. Most read in Money They could order money, property or even a slice of their ex’s pension to be handed over. Unlike divorce, there would be no automatic presumptions of a 50-50 split of assets. Each person keeps what they own unless their ex genuinely cannot cover their needs. Domestic abuse charities have welcomed the move, as financial dependence is often what traps victims in dangerous relationships. Many stay because they fear being left penniless with nowhere to live if they leave. Sam Smethers, of Surviving Economic Abuse, called it a “once-in-a-generation opportunity to change the lives of victim-survivors”. However, critics have blasted the automatic opt-in system as an attack on personal choice. Baroness Ruth Deech said: “Many people consciously choose not to remarry because they value both companionship and financial independence.” She added: “They should remain free to make that choice, and the law should respect, not undermine, it.” Barrister Katharine Bundell said the plan “does increase the risk to the financially stronger party but protects the financially weaker”. She noted this includes those “disadvantaged through sickness, childcare, or having fewer assets due to economic abuse”. Legal experts insist couples don’t have to wait for the law to change. Selig urged unmarried partners to draw up a cohabitation agreement and a will, warning: “Without a will, their partner may inherit nothing in the event of the death of the other party.” Comment now