Some do.. some don't depends on the tank. Kind of a trial and error sorta deal. Spawning cichlids will attack pretty much anything that is moving in the tank, so watch out. I have actually had a severum break skin before, for no apparent reason.
I would say that in the next like 3-4 months, you will need to move it, depending on the size of the fish now. I would suggest at least a 55 gallon.