The Supreme Court of Appeal has reaffirmed that couples who live together without being married can still be recognised as partners in a universal partnership and may share in the joint estate built during their relationship.
This follows a recent judgment in which the court dismissed an appeal by a man, identified as P, who challenged an earlier high court ruling that found a universal partnership existed between him and his partner, S.
The couple lived together for 16 years before their relationship ended. During that time, they shared expenses, invested together and worked to build their financial stability. Although they were engaged, they never married.
The high court had ruled that S contributed significantly to the shared estate and was therefore entitled to a fair portion. P appealed the decision, arguing that there had been no formal partnership.
In its ruling, the Supreme Court of Appeal emphasised that a universal partnership does not require a formal agreement or marriage. It exists when both partners contribute through money, labour or skills towards a shared enterprise for their mutual benefit.
The court found that S sold her belongings at the beginning of the relationship and moved in with P. She helped him with his business ventures, pooled her income with his and devoted time and effort to their shared goals. The couple also made a joint investment of R1.2 million in an Old Mutual policy, with S named as the beneficiary should P pass away.
According to the court, these actions showed a clear intention to form a universal partnership. Both parties contributed to the relationship, worked for their joint benefit and sought to grow their assets together.
The court concluded that the partnership began in March 1989 and ended in April 2005. Upholding the earlier ruling, it confirmed that S was entitled to a 35 percent share of the partnership estate, while P retained 65 percent.
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