COHABITATION RELATIONSHIPS

TO ALL ESTEEMED BUSINESS PARTNERS

Number

32/2016
In the recent unreported case of Vermeulen v Marx (19398/2014) [2016] ZAGPPHC dated the 25 July 2016 it was once again made abundantly clear that it could be costly and emotionally draining to prove that the contribution over numerous years constituted a universal partnership, and after break-up of the cohabitation relationship what share in the partnership accrues to which party.

A universal partnership does not require an express written agreement, and could also come into existence by agreement, derived from the conduct of the parties.

A universal agreement will exist where the following essentials are present and can be proven:
  • Each party brought something into the partnership, whether in the form of money, labour or skill
  • The partnership was carried on for the benefit of both parties
  • The object was to make a profit
  • The agreement was legal
In the instance of persons cohabitating, the contribution of one party can even be the time, effort and energy in promoting the interests of both parties in their communal enterprise by maintaining the common home and raising the children.

Where no mutual agreement can be reached as to the division of the assets of a universal partnership the court will have to be approached and as already alluded to can be costly and lengthy proses and also emotionally draining.

Conclusion

Where persons are in a cohabitation relationship, they are strongly advised to conclude a written contract which clearly provides who owns the property and who gets what where the relationship irretrievably falls apart.

The said contract should also not be recorded as a once off agreement, but should be updated on a regular basis.

For any queries please contact our property law division at the details below:

Allen West
Tel: 012 425 3549
awest@macrobert.co.za

Daleen Loubser
Tel: 012 425 3489
dloubser@macrobert.co.za

Disclaimer: This newsflash is for general information only and should not be used as legal or professional advice. No liability can be accepted for any errors or omissions, nor for any loss or damage arising from reliance and any information therein