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Question:
What do you know about money and relationships?
Most likely answer:
Not much. Well, it’s awesome for you then that we have a great contributed most on money and relationships. Time to get the scoop.
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Life is rattling along and everything is good.
After all, you’ve finally figured out how to handle your finances.
But, wait a minute – what’s that on the horizon?
Oh, it’s the love of your life and now you’re in a relationship.
Now, it’s time to work out how to merge your finances as well as the other stuff.
It’s okay because all you need to do is open a joint account.
There – the job is done
Except it isn’t over, not by a long shot.
When you are in a committed relationship, it’s important to cover bases for their sake, and below are four which are non-negotiable. Here’s what you need to know about money and relationships.
Life Insurance
Your mortality isn’t something you like to think about regularly.
Let’s face it – death seems like it’s a long way away. Of course, it can happen at any time and leave your loved ones in a horrible situation.
Not only do they have to grieve but they also must deal with the debts you leave behind.
Without a life insurance policy to cover the expenses, life might get twice as tough. Although it’s tricky, remember the bigger picture.
Plus, taking out life cover doesn’t mean you’re going to go anywhere anytime soon. If anything, it says you’re being pragmatic investing in a safety net.
Related: Couples Money: How To Handle Finances In A Relationship
Lawsuits
Filing suit is a stigmatized thing.
As a human being, it’s tough to take another person to court and take their money. The process is pretty harrowing, so it can only be as bad for them.
Still, people make mistakes and there are bills to be paid. Sadly, the IRS won’t accept your morality as a form of payment.
Sometimes, it’s vital that you schedule a consultation and talk about your case. The compensation can cover the costs of medical and household bills while you’re recovering and not earning.
Never take a suit lightly yet don’t be scared to do the right thing either.
Related: Pay Off Debt And Save Money In 2019
Cosigning loans
Once you’re a couple, the major assets you buy belong to both of you, fifty-fifty.
The reason cosigning a lease, for example, is essential is two-fold. To begin with, your partner will own at least half of the property should something happen. You can leave the rest in your will, but no one will be able to kick them out as they will own a portion.
Secondly, cosigning a lease or mortgage means you aren’t liable. Sure, you’ll pay for your half yet they’ll have to contribute too should you split. It’s not nice to think about but it’s practical.
Related: How To Make Money: 2019 Guide
Financial honesty is crucial to money and relationships
The love of your life thinks everything is perfect because they don’t know about your secret debts.
They have no clue that your arrears will ruin your credit score and the opportunity to get an affordable mortgage. They don’t know because you are keeping it a secret.
Now that you’re one, it’s important to be honest. Firstly, the surprise won’t put the relationship in jeopardy. And, you can figure out ways to get around the debts.
Understand money and relationships is by no means straightforward, so how do you find the perfect balance?
Related: Money Mistakes To Avoid In 2019
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