Contracts for conscious coupling

Whether you call it "shacking up", "vat 'n sit" or "masihlalisane", the decision to cohabit with your partner is a big one, and you should consider the financial implications, especially if you are going to be buying a house together.

A cohabitation agreement is important if you wish to ensure that both of you are protected.

If you decide to buy property with your partner, a joint bond would be the smartest way to ensure that you are both listed as owners of the asset.

One of the cohabitants can sell their share of the property to the other cohabitant or to another person outside the relationship. If you and your partner decide to split, it's advisable to contact a legal assistant to help you work out how to handle the property without both of you defaulting on bond payments.

There are some instances where one of the partners in a relationship doesn't work and, instead, takes care of things on the domestic front, relying on the other partner for financial maintenance.

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In the event of a break-up or termination of the agreement, the partner who might require maintenance will need to prove that there was a universal partnership and they contributed to the partnership.

This might lead to a lengthy legal process, so avoid this by discussing your options beforehand with a lawyer and your partner.

When it comes to life cover and pension fund payouts, you need to be specific about the beneficiary so that, in the event of your death, your partner is not sidelined.

You can outline this in the cohabitation agreement, but you'll also need to be specific about it in the policies. If you've taken life cover and you and your life partner have decided to have children, you'll need to make sure that this is catered for in your financial planning.

Lastly, when you're thinking about estate planning, both of you need to be aware of the rights your partner has.

If your partner dies without a valid will and their estate has to be divided up according to the law of intestate succession, you as a partner have no inheritance rights, regardless of how long you had lived together.

The absence of a will also means you are not entitled to any form of maintenance according to the Maintenance of Surviving Spouses Act. The Intestate Succession Act is clear that beneficiaries of the estate are the spouse, children or both.

Where there is no spouse or children, the estate is distributed to the deceased's nearest surviving family member.

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There's no one-size-fits-all when it comes to what you should and shouldn't include in your agreement.

It's therefore important that both of you are honest about the financial implications of any decisions you make. As your financial situation changes, you should review your partnership agreement to ensure that it's still relevant.

It's also a good idea to see a lawyer together to help you draft a valid contract, bearing in mind that having an external and objective eye will help both of you consider all the possibilities.

As with an antenuptial agreement, a cohabitation agreement is not about distrust.

It's a practical way to ensure that you and your partner are protected throughout the duration of your relationship and in the event of death or separation.

Depending on the amount of joint assets you've accumulated, an agreement can help you split things up fairly. But, as with all contracts, both parties have to agree to it - and should benefit accordingly.