Head of Insurance and Fiduciary at Standard Bank, Shaka Zwane, says couples that are cohabiting should ensure their partners are protected. “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,” Zwane mentioned.
Zwane offers important financial and legal obligations that unmarried couples who are living together should consider. He says that unmarried couples who live together don’t get the same legal protection as married couples do. Therefore it’s essential to have a clear agreement that outlines each partner’s responsibility. “Without such an agreement, conflicts can escalate, leading to financial strain and emotional distress,” Zwane warns.
He further points out that a cohabitation agreement is essential as it clearly defines ownership and sets out a process for asset division. This is essential for cohabiting couples who decide on purchasing a home together, in case of death or separation their partners will be protected.
“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,” Zwane concluded.
Compiled by Clement Matroos
clement@mahareng.co.za
