Short notes on: Marriage versus Cohabitation (Life Partnerships) Introduction Many couples prefer living together (often referred to as the domestic partnership, cohabitation agreements, living together, concubinage and common-law marriage), as opposed to getting married. For others, on the other hand, not getting married is a forced way of life, because many countries still do not recognise nor make provision for the solemnisation of same sex marriages (in South Africa these relationships are regulated by the Civil Union Act 17 of 2006). Thus, these cohabitation relationships can exist between heterosexual or same sex couples and often involve the same core sentimental ideas and reciprocal duties of support that a marriage does, but without having the marriage certificate to prove the existence thereof and without having the automatic legal protection marriages do. Therefore, being involved in a relationship of this nature does not merely involve personal commitment and emotional investment, but also involves many legal and proprietary consequences, that if not recorded in writing (partnership agreement) can leave couples in dire straits upon it’s termination. The consequences that must be recorded in writing include: the duty of support towards one another, right to share in each other’s property during the relationship (or when it terminates) and to inherit from each other in terms of the rules of intestate succession. Thus, if the reciprocal duty of support between partners together with the proprietary consequences of the relationship are not legally recorded, the parties are not automatically afforded the ex lege (automatic) legal protection as is afforded by marriage. In recording the legal and proprietary consequences of cohabitation relationships, two options exist: 1. Universal partnership In cases where the cohabitation relationship meets the following requirements, a common law universal partnership may be founded:1 (1) (2) (3) (4) 1 2 3 Each party must bring something into the partnership or bind himself or herself to bring something into it. The venture must be carried on for the parties’ joint benefit. The aim must be to make a profit.2 The partnership contract must be valid / legal.3 V (also known as L) v De Wet 1953 1 SA 613 (O). Ally v Dinath 1984 2 SA 451 (T) and Sepheri v Scanlam 2008 1 SA 322 (C). Zulu v Zulu 2008 4 SA 12 (D), Muhlmann v Muhlmann 1981 4 SA 632 (T). © Nicolene Schoeman - Schoeman Attorneys 2010 1 The partnership agreement will therefore regulate which assets form part of the partnership,4 the proportion in which partnership assets are owned and shared, and the proportion in which generated profits are shared between the partners. However, if these proprietary aspects are not agreed to in the said agreement, each partner’s contribution (assets, money, domestic services)5 determines his or her share in the partnership.6 Furthermore, the normal (common law) rules, provisions and legal consequences of universal partnerships apply in these instances, thus a partner may not alienate or use partnership assets as personal security, without the other partners’ prior consent and may not entirely exclude a partner from controlling the partnership property / assets. Moreover the partnership automatically terminates on death of either partner and the surviving partner is entitled to an undivided 50% share of the partnership assets, but is not entitled to remain in possession / occupation of partnership assets, in the absence of a bequest (in a will) or an agreement (provision in the partnership agreement) to the contrary.7 2. Life partnership In cases where the requirements of the universal partnership cannot be met, couples can establish a life partnership (which is also commonly known as a cohabitation or domestic partnership agreement). This partnership agreement will create and regulate the reciprocal duty of support and maintenance between the parties as well as the proprietary consequences of the relationship, in general, and will also regulate aspects such as; post-separation maintenance, regulate ownership of any assets acquired prior to the relationship, assets acquired during the subsistence of the relationship, payment of household expenses and liabilities, etc. The common law rules relating to partnerships as mentioned above, will also apply in these cases. Even though an agreement of this nature aims to regulate the legal and proprietary consequences of the relationship, much like a marriage does but without the intention of generating profit (like the universal partnership), the contract and relationship can be terminated (partnership dissolved) in accordance with the provisions contained in the partnership agreement and / or common law (automatic dissolution upon death of a partner). Conclusion The marriage is currently the only social / legal institution that protects the rights of spouses, without having to enter into additional agreements, as there is an automatic and reciprocal duty of support between spouses, duty of maintenance during and in some cases after termination of the marriage, spouses can inherit from one another through testate (will) and intestate succession, etc. While the legal and proprietary consequences of life partnerships or cohabitation relationships must be regulated by a partnership agreement. However, in the absence of agreement, partners can still approach a court, after the relationship has been terminated (by death or separation), for an order for maintenance, an intestate 4 V (also known as L) v De Wet 1953 1 SA 613 (O) and Ally v Dinath 1984 2 SA 451 (T). Isaacs v Isaacs 1949 1 SA 952 (C). Isaacs v Isaacs 1949 1 SA 952 (C) and Muhlmann v Muhlmann 1981 4 SA 632 (T). 7 Botha v Deetlefs 2008 3 SA 419 (N). 5 6 © Nicolene Schoeman - Schoeman Attorneys 2010 2 succession order and / or an order dividing the property. 8 In these instances the courts must have regard to all the circumstances of the relationship before giving an order.9 Nevertheless, this is an expensive and time consuming process that does not guarantee a satisfactory outcome for the parties. Therefore, we strongly urge couples who are in unrecorded life partnerships to employ the services of an attorney to draft and assist in the execution of a suitable partnership agreement and to make the necessary legal provisions in their wills. 8 9 South African law reform commission report March 2006 project 118 Domestic partnerships. South African law reform commission report March 2006 project 118 Domestic partnerships. © Nicolene Schoeman - Schoeman Attorneys 2010 3