21 May
Should Unmarried Couples Combine Assets?
It may be tempting to rush into a financial union when you are in love. But its probably more wise to take it slow. Here are a few tips on how to handle the mingling of assets for unmarried couples.
- Keep assets separate early on in a relationship.
- Don’t combine checking accounts.
- Own as little property as possible jointly.
- Contribute equally to a shared checking account to pay for common expenses.
- If you buy a house, decide between “joint ownership with rights of survivorship” or “tenants in common.” In joint ownership, one person will inherit the property upon the others death. In “tenants in common” you each own 50% of the home and you can specify who you pass ownership to upon death.
- Be careful becoming too dependent upon a partner before you are married. If your partner encourages you to quit your job so that they can take care of you, get it in writing in a legally enforced document.
It may be useful to consult a lawyer for certain situations. Unmarried couples living together may not have the same legal protections that a married couple may have, and its important to make wise financial decisions with an eye towards the future.
Personal Finance Issues for Unmarried Couples Living Together
