Living with someone is an exciting step in any relationship, but taking the leap involves having some difficult conversations—like shared expenses. Ultimately, there isn't a right or wrong way to split the cost of living—you just need to find a solution that works best and that both parties agree upon. Looking for tips on how to navigate these changes? Keep reading!
Although I'm no financial professional, I've learned a few things over the years. Keep reading to get tips and tricks on sharing expenses with a new live-in partner.
Have the conversation
Before anything else, the first step is to discuss taking the time to discuss your finances.
It's essential to lay everything out in the open at this stage. For example, if your new partner contributes to the mortgage payment, this is an agreement that you should get in writing either with the notary or done yourself. This avoids the potential for any misunderstandings or miscommunications if and when the house is sold, or the relationship ends.
Protect what’s yours
The "What happens when we break up?" discussion is never easy, especially when the relationship is new, but trust me, having the talk will avoid future issues. After all, who thinks that the worst will happen when you're in the honeymoon phase? But life can be so unpredictable, so you must protect what's yours because you've no doubt worked hard to get to where you are today, and losing that wouldn't be fun.
Don't rely on the hope that the relationship will end amicably and that you'll work something out that benefits both parties. You never know.
Establish common expenses
It's a good idea to list shared expenses related to the house—or at least the expenses you want to share. Then, you can divide them up based on salary. If one partner has an income of $40,000 and the other's is $85,000, it makes sense that the person with the higher income would pay a higher percentage. This is a compromise and a fair way to manage all joint expenses.
Having a joint account is another way to have shared funds on hand. Once you've established the percentage of each, deposit those amounts into your joint account every month. Naturally, trust is important, seeing as there's money involved. Be sure to ask questions and clarify what the joint account will be used for and what the expenses will go towards.
To sum things up, proper communication in any partnership should always be a top priority. Make your intentions and perceptions of this cohabitation clear to ensure that everything is fair for both parties.
