'Divorce' rights for unmarried couples who split

The report suggests each partner's financial contribution to the relationship - including giving up a job to care for children - should be taken into account.

Under the scheme, courts would have the power to order partners to sell their home, pay lump sums or even share their pensions.

But it stops short of awarding couples who live together the same rights as married couples. There would be no principle that assets should be split equally and ongoing maintenance payments would not be expected unless children are involved.

An opt-out scheme for couples, giving them the freedom to make their own plans should the relationship end, would be in place. Young people who rent a flat together for a few years would not be eligible.

The independent body, which advises ministers on law reform, said: "Merely moving in with someone would not give rise to any entitlement to a remedy."

Anyone trying to make a claim would have to show they suffered financial disadvantage or their partner gained a benefit from the relationship, for example if one took a career break to bring up children.

Stuart Bridge from the Law Commission said: "More and more families involve couples who are living together but who have not married.

"The law that currently applies to resolve property disputes between such couples on separation is unclear and complicated, and it can produce unfair outcomes. This causes serious hardship not only to cohabitants themselves, but also to their children."

He insisted the scheme would be "different from divorce" and denied it would undermine marriage.

"We consider that our scheme strikes the right balance between the need to alleviate hardship and the need to protect couples' freedom of choice," he said.

The Commission said the current law was " uncertain and expensive to apply" and because it was not designed for unmarried couples the results were often unjust.

There are two million cohabiting couples in England and Wales and the figure is expected to reach 3.8 million by 2031.

The majority of couples who live together wrongly believe they are protected by " common law marriage" and would be entitled to a share of the assets when a relationship breaks down. But in reality, cohabiting couples have very little legal protection if the relationship ends.

The Government will now consider the proposals.