Don’t say you were not warned: moving in together has its share of headaches and financial problems. One of the most important aspects involved in moving in together is sharing financial responsibilities for basic necessities. It is important to talk about where you both stand financially and what your capabilities are to avoid tension in the relationship.
Settle financial details ahead of time to avoid disagreements in the future. Here are a few money rules for moving in together:
The Money Talk
Set a time when you and your partner can talk about money so that you both get a clear picture of your financial conditions. Discuss your monthly income, credit score, loans, debt, investments, and other financial obligations. In most cases, when moving together, you will have to sign legal documents together. It is best to establish your personal and financial obligations to avoid conflicts later on.
Who Pays for What
After establishing a financial picture, decide who will pay for which expenses. If you make less or more than your significant other, be open and clear. The high-earner may pay more in the rent, but make sure that both of you is comfortable with agreement. If you’re considering buying an apartment for sale in Brisbane, for instance, talk about mortgage payment methods.
Arrangement in Writing
When it comes to managing assets and expenses, try to leave emotions out of the decision-making process. Put your arrangements in writing and detail how much each person will pay for the rent, when to the pay bills, and other space-sharing arrangements. You can also consider exchanging net worth statements and talk about individual concerns about financial matters.
Keeping Finances Separate
It is not advisable to comingle your debt or apply for joint credit. You should also avoid combining investments or bank accounts. If you are getting married soon, however, you can consider having a joint checking account which both of you can put money in to cover mortgage and other expenses. Just make sure that you have a separate account to cover individual necessities.
It is normal for some to feel a loss of control or privacy of their individual finances. Keep in mind that communication is extremely important. Address your worries and fears about money immediately to avoid hard feelings later on.