Queen Malobane, Provincial General Manager at Metropolitan
Marriage rates in South Africa dropped by 29.5% between 2013 and 2022, according to Stats SA data on civil marriages. This shift suggests that nearly a third of committed couples are choosing to live together as life partners, without legally tying the knot. For some, marriage may not feel necessary to demonstrate commitment; for others, it’s a deliberate choice to retain financial or personal independence. But even without the wedding vows, the financial implications of these partnerships can still be substantial.
Financial planning is crucial for all committed couples – regardless of their marital status. Many couples assume that living together without marriage means avoiding complex financial ties, but the reality is that cohabiting partners need just as much financial planning as married couples – if not more.
“While financial planning for unmarried couples may seem complex, working with a financial adviser can simplify the process.”
Protecting your partner with life cover and estate planning
For any long-term couple, a shared life usually means shared expenses – from rent and groceries to larger financial commitments and investments. However, without formal protection, one partner could be left financially vulnerable if the other passes away unexpectedly. Life cover is one way to safeguard the surviving partner and ensure they aren’t left financially stranded. Unlike in marriage, unmarried partners lack legal inheritance protection, so designating your partner as a life cover beneficiary is crucial to ensure they are provided for in the event of your death.
A clear estate plan is very important, especially considering that unmarried partners in South Africa do not have automatic inheritance rights. A will allows you to specify asset distribution, ensuring your partner benefits rather than distant family members. Regularly updating your life cover and estate plan with an adviser will help keep your assets aligned with your evolving needs and protect your loved ones.
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Planning for children as beneficiaries
Unmarried couples who have started a family should ensure that their financial arrangements and legal documents protect their children if anything happens to either parent. Establishing a testamentary trust in a will allows assets to be managed for children until they reach a certain age, shielding the inheritance from any complications that might arise. Equally important is keeping wills up to date and ensuring beneficiaries are regularly reviewed to reflect any changes in family dynamics or financial goals.
Unmarried and building wealth? Have a plan in place
Cohabiting partners often build wealth together, whether it’s through property, savings, or investments. Without a formal arrangement, these assets can become difficult to divide if the relationship ends. For this reason, a cohabitation agreement is recommended, that clarifies ownership and protects both parties’ interests, preventing conflict down the road.
Unmarried partners should also consider joint investments or savings accounts, but with clear terms on ownership and access. Without marriage laws to regulate how assets are split, formalising arrangements in writing is even more important.
Seek advice from a financial planner
While financial planning for unmarried couples may seem complex, working with a financial adviser can simplify the process. An adviser can guide you through selecting life cover, structuring your estate plan, and formalising agreements. In the absence of automatic protection, advisers can help ensure assets are allocated according to your wishes, establishing financial security for both partners.
Even if couples choose to never formalise their relationship legally, they still share lives, responsibilities, and goals. Financial planning can bridge the gap, ensuring both partners are protected, regardless of marital status.