Financial Conversations for Couples

Johannesburg, 10 February 2025 – With Valentine’s Day around the corner, many couples are contemplating the next step in their relationship, and living together is increasingly a common choice before committing to a marriage. The 2022 Census Survey Report found that around 8 in every 100 couples live together before marriage. While love may be the primary motivator, understanding the financial and legal implications is crucial. “Without a cohabitation agreement, your partner is not legally protected,” warns Shaka Zwane, Head of Insurance and Fiduciary at Standard Bank.

Below, Zwane outlines key financial and legal considerations for unmarried couples living together.

Navigating possible future breakups

Unmarried couples living together don’t get the legal protections that married couples enjoy. Without a cohabitation agreement, there’s no clear recourse if the relationship ends. A clear agreement that outlines each partner’s responsibilities, makes asset division easier and avoids costly legal battles. “Without such an agreement, conflicts can escalate, leading to financial strain and emotional distress,” warns Zwane.

Co-owning assets: Set a clear path forward

Many cohabiting couples decide to purchase homes together, but without a formal agreement, these shared assets become vulnerable in the event of separation or death. In such cases, family members of either partner may try to claim these assets, potentially leaving the surviving or separating partner without their rightful share. A cohabitation agreement clearly defines ownership and sets out a process for asset division, offering protection for both parties.

Implications in case of death

Family disputes over shared assets are common when someone dies. But the stakes are even higher for unmarried couples as proving ownership becomes challenging when they have no legal agreements in place. “Unlike married couples, you are not automatically protected by laws like the Maintenance of Surviving Spouse Act. Another important factor is that without a Will, it becomes difficult to claim tax benefits and estate deductions, which could inflate estate winding costs,” says Zwane. 

He adds that while recent case law has offered some relief, the surviving partner must still prove that the relationship was permanence and that they need financial support, which can be both financially and emotionally taxing.

Securing your future with estate planning

Comprehensive estate planning is essential for all couples, regardless of marital status. A valid will ensures that their wishes regarding asset distribution are respected. “Life insurance and funeral cover, with your partner as the beneficiary, can provide crucial financial support during a difficult time, covering interim expenses and maintenance,” says Zwane.

He concludes that a professionally drafted cohabitation agreement, integrated with an up-to-date Will and estate plan, clarifies the status of unmarried couples’ relationships. It also strengthens each partner’s position in the event of unforeseen circumstances.  Zwane recommends consulting with a legal and financial advisor to help these couples tailor these strategies to their specific circumstances.