Single But Living Together: Priceless Financial Tips for Co-Habitating Couples
Posted by : Premraj | Posted on : Sunday, September 11, 2016
These days, many single people opt to move in together before getting married, and they do so for a number of reasons. Some do it for love. Others do it for financial reasons. Usually, the move-in is a combination of both. When people split the rent and other living expenses, they may afford to live in a nicer place than they would if they lived alone. Of course, this financial benefit is most likely to happen when co-habitating couples or those who are considering moving in together follow a few simple suggestions.
Before you move in together
Money management experts at Entrepreneur magazine note a number of savvy to-dos that may make it easier for co-habitating couples to manage their money. Their number one recommendation is that couples be fully honest with each other about their personal finances. Talk to one another about things such as income, debts, savings, valuable assets, and other personal financial matters. Financial honesty at the beginning may well spare a couple embarrassing financial revelations later. Entrepreneur says that if either partner is unwilling to be fiscally truthful, the couple may want to reconsider living together at all.
If either of you have been divorced and are currently receiving alimony, those payments may be forfeited when you move in with a boyfriend or girlfriend. Be sure to check your state laws, or consult with an attorney who has experience in family law.
Tracy Stewart is a financial specialist and certified public accountant. Stewart says that co-habitating couples may share expenses, but they should always keep their debt separate. “Never commingle your debt. Do not merge college loans or credit card debt with yours to create joint debt,” she explains. One partner’s debt load can adversely affect an otherwise happy couple, so it’s generally a good practice to keep one’s own credit identity and history. Taking care of old debt is another good thing to do before heading to city hall for a marriage license.
Co-habitating households generally rely on two incomes to sustain themselves. If one member of the household becomes injured and unable to work due to someone else’s carelessness or negligence, it can put financial pressure on the other contributing resident. Anyone who is hurt on the job, at a business, or in a public area should consult with a personal injury lawyer law firm such as warren-kallianos.com without delay.
Perils of not disclosing finances before moving in together
According to Foreign Policy News, financial troubles are one of the main reasons couples break up, whether or not they are legally bound by marriage. Ofttimes, this trouble begins when two people are not up front with one another about how they manage money. If one person seems to be earning more than the other, this can cause a disturbance in a couple’s happy home life, as well.
One money matter than you may omit from the conversation is how much you spent on your mate’s birthday present. Aside from that, a good sit-down money talk with your potential housemate can go a long way toward improving your chances of building a blissful home life.
Amy Charlesworth is a personal finance consultant whose articles appear online and give practical information to a wide online audience.