Cohabiting partners may not automatically inherit, receive retirement benefits, or benefit from life insurance.
When it comes to financial recognition, cohabiting partners occupy a curious middle ground.
Tax law treats them generously – the South African Revenue Service (SARS) recognises a permanent life partnership for income tax, donations tax, estate duty, capital gains tax and transfer duty purposes and cohabitants are deemed to be married out of community of property as long as there’s no proof to the contrary.
Family law, however, does not. And retirement funds operate under their own rules entirely.
Life insurance policies offer the most straightforward protection. Either partner in a cohabitation relationship may nominate the other as a beneficiary, and the insurance company must pay the proceeds to that person.
