Marriage is more than just a romantic commitment - it comes with significant legal benefits too. In this guide, we’ll explore the key legal benefits of marriage in the UK, its financial advantages, and how it compares to cohabitation.
What are the legal benefits of marriage?
Marriage offers several legal protections that unmarried couples don't automatically receive.
Financial benefits
One of the biggest benefits of marriage is that there are certain tax breaks and exemptions.
Marriage allowance: Married couples may benefit from the Marriage Allowance, which allows one spouse to transfer £1,260 of their personal tax allowance to the other, reducing their tax bill.
Capital Gains Tax relief: Assets transferred between spouses are exempt from Capital Gains Tax (CGT), which is beneficial when you're selling or gifting property, shares, or investments.
Spousal pension benefits: Many workplace and private pensions automatically provide survivor benefits to a married spouse, while unmarried partners often need to be explicitly named as beneficiaries.
Shared debts and financial responsibility: If a married couple applies for a joint loan or mortgage, lenders may offer better rates as marriage is often seen as a sign of financial stability.
Protection in the event of divorce: If a married couple separates, assets are divided fairly, and spousal maintenance may be awarded based on need. Cohabiting couples do not have these rights.
Inheritance rights
Under the Rules of Intestacy, married couples have an automatic right to a partner’s estate when they pass on. Other inheritance rights include:
Automatic inheritance: If a spouse dies without a will, the surviving partner automatically inherits part or all of the estate under UK intestacy rules. Unmarried partners have no automatic inheritance rights.
No inheritance tax between spouses: In most cases, a surviving spouse pays no Inheritance Tax (IHT) on assets passed to them, whereas unmarried partners may face a 40% tax on estates over £325,000.
Stronger legal standing in wills: While everyone should have a will, married couples are legally prioritised if no will exists, unlike unmarried partners who may need to challenge the estate in court.
Parental responsibility
Parental responsibility is outlined in section 3(1) of the Children Act 1989, and is defined as: "all the rights, duties, powers, responsibilities and authority which by law a parent of a child has in relation to the child and his property". Married couples have certain rights when it comes to parental responsibility:
Automatic parental responsibility for fathers: If a child is born during marriage, both parents automatically have equal parental rights. Unmarried fathers must be named on the birth certificate to gain legal parental responsibility.
Easier decision-making in custody cases: Married parents have clear legal standing in matters like custody, medical decisions, and financial support if they divorce. Unmarried parents may need court orders to settle disputes.
Legal protections in separation: If a marriage ends, courts ensure fair financial arrangements for children. Unmarried partners must apply separately for financial claims on behalf of their children.
Legal advantages and disadvantages of marriage
While marriage offers many legal protections, it also comes with some key responsibilities. Below is a quick comparison:
Legal advantages of marriage | Legal disadvantages of marriage |
|---|---|
Automatic inheritance rights | Divorce can be costly and complex |
Spousal pension and tax benefits | Assets may be divided upon divorce |
Stronger parental rights for fathers | Financial ties could include debt liability |
Legal clarity in financial matters | Can impact benefits eligibility |
Protections in separation and divorce | Prenuptial agreements may not always be upheld |
💡Top tip: If you’re concerned about protecting assets, you may want to consider a prenuptial agreement.
What is a prenuptial agreement?
A prenuptial agreement (prenup) is a legal document that sets out how assets and finances will be divided if a couple divorces. While not automatically legally binding in the UK, courts may uphold it if it is fair, properly drafted, and both parties received legal advice.
When do married couples need one?
While prenuptial agreements can’t override UK divorce laws, they help provide clarity and financial security. A prenuptial agreement is useful in situations like:
One partner has significant assets or property before marriage.
A business is involved, ensuring it remains separate from marital finances.
One partner has children from a previous relationship and wants to protect their inheritance.
One spouse has significant debts, ensuring the other isn’t held liable.
Are there legal benefits for unmarried couples?
Unmarried couples have fewer legal rights than married couples. Many people assume that living together for a long time gives them a 'common law marriage', but this is a myth - there is no such legal status in the UK.
Key legal disadvantages for unmarried couples
🚫 No automatic inheritance rights: If one partner dies without a will, the other is not entitled to inherit unless they are named as a beneficiary.
🚫 No financial rights in separation: Unlike divorce, cohabiting partners are not legally entitled to financial support from each other after separation.
🚫 No automatic pension rights: Unmarried partners often need to be specifically named in a pension policy to receive benefits.
When do unmarried couples need a cohabitation agreement?
A cohabitation agreement can help unmarried couples protect their legal and financial interests. The agreement is essentially a formal document that outlines what happens when an unmarried couple separates. It can:
Define how property, savings, and assets are owned.
Clarify who is responsible for household expenses and bills.
Set out arrangements for children and financial support if the relationship ends.
Protect one partner from the other's debts.
Without a cohabitation agreement, an unmarried partner may have to go to court to claim financial interests in a property or assets.
FAQs
Does getting married affect your will?
Yes. Marriage automatically cancels any existing will unless it was made 'in contemplation of marriage'. If you do not update your will, your estate will be distributed according to intestacy rules, which may not match your wishes.
Does getting married affect your pension?
Yes. Many workplace pensions offer spousal benefits, meaning a surviving spouse may receive a portion of the pension. However, unmarried partners may not automatically qualify unless they are named as a beneficiary.
Final thoughts
While marriage is often seen as a personal milestone, it also carries legal and financial implications. Married couples benefit from stronger legal protections, particularly regarding inheritance, tax benefits, pensions, and parental rights.
💡 If you’re getting married or moving in with a partner, consider seeking legal advice to ensure your financial and parental rights are protected. Looking for help setting up a cohabitation agreement or prenuptial agreement? Get in touch and see how a family law solicitor can help.
