SCA Recognizes Relief for Women in Universal Partnerships

The Supreme Court of Appeal (SCA) has once again confirmed that unmarried partners may share in assets accumulated during their relationship, provided that a universal partnership can be proven. This significant ruling reinforces the principle that cohabiting relationships — even without the formalities of marriage — can give rise to enforceable financial rights between partners.

According to The Star, the case concerned a woman (“S”) who lived with her partner (“P”) for 16 years. During this time, the couple pooled resources, shared expenses, and worked together in business ventures. Although the pair were engaged, they never formalized their union through marriage.

When the relationship ended, the High Court found that a universal partnership existed between the two, recognizing that S had contributed materially to the couple’s joint estate. P, unhappy with the decision, appealed to the SCA, contesting the existence of such a partnership.

The SCA, however, upheld the High Court’s decision. The court found that the evidence — including the couple’s discussions before cohabitation and their conduct during the relationship — demonstrated a clear intention to form a universal partnership.

The court emphasized that a universal partnership need not be formally recorded, and that the essentials of a contract of universal partnership had been satisfied in this case.

These include:

1. Each partner bringing something into the partnership (money, labour, or skill);

2. The partnership being carried on for the joint benefit of the parties;

3. The object being to make a profit; and

4. The partnership contract being legitimate.

Ultimately, the SCA confirmed that the woman was entitled to a 35% share in the partnership estate, while the man retained a 65% share.

This judgment serves as an important reminder that South African courts are willing to recognize and protect the financial contributions of partners in long-term relationships — even where marriage has not taken place. Individuals in similar circumstances should be aware that, depending on the facts, the law may provide mechanisms to ensure fairness upon the breakdown of such relationships.

If you are in a cohabiting relationship or require advice on your rights and obligations regarding a universal partnership, contact Rudolf Buys & Associates Attorneys for professional legal assistance and guidance.