Hot Issues
spacer
From Goldilocks to taper tantrum 2.0
spacer
What’s your debt age?
spacer
Doing a budget is a good idea but ....
spacer
Planning is the key to making it financially
spacer
What to do when you come into money
spacer
Managing your money when you move in together
spacer
Reduce your bills with these household items
spacer
It pays to contribute to your partner's super
spacer
How to cope with losing independence
spacer
Transition to retirement income streams
spacer
The Australian economy hits another rough patch
spacer
Watch out for tax scams
spacer
The three core pillars of this year's budget
spacer
Federal Budget - 2017-18 - Overview
spacer
Federal Budget - 2017-18 - Budget documents
spacer
Make the most of the current super caps
Article archive
spacer
May-2017
spacer
January-2017
spacer
December-2016
spacer
July-2016
spacer
April-2016
spacer
February-2016
spacer
October-2015
spacer
August-2015
spacer
May-2015
spacer
February-2015
spacer
December-2014
spacer
3
Managing your money when you move in together

Living together is a big step. You may be merging your lives more closely, but should you merge your finances? 

 

 

So you’ve taken the leap and decided to move in together. 

It’s an exciting time which can take your relationship to a new level, but it can also add new pressures as you address practical matters such as how you divide the chores and the costs. 

Set your new home up for success by discussing joint finances upfront and early on. 

How serious are you?

Consider how long you’ve been together and how serious the relationship is before deciding to merge your money. 

Moving in together can make or break a relationship so it might be a good idea to give your new living arrangement a few months to settle before addressing the question of joint finances. 

Talk about values and past experiences

Both how you were raised and your past experiences can have a big influence on your financial outlook. 

It’s worth discussing your attitudes to money including:

  • who managed the finances in your family
  • how family financial decisions were made
  • experiences you may have from managing money in past relationships and
  • whether you’re a financial conservative or risk taker.

Consider your future goals

A conversation about your goals, both personally and as a couple, can help ensure you’re on the same path. You might uncover joint goals to begin saving for things such as:

  • travelling and working overseas
  • saving for a house
  • saving for a wedding or
  • saving to start a family.

All or nothing?

Merging money doesn’t have to be a case of all or nothing.

Perhaps you could open a joint account for shared expenses and bills while maintaining separate accounts for personal spending? 

A joint savings account that you can both contribute to in order to save for your goals could also be useful. 

What else to consider

Once you’ve been living together for two years you’re legally considered to be defactos.(i) This means that if your relationship ends, the division of any assets or debts could be decided by the courts, just as for married couples. So while it’s not pleasant to think about, it’s important to consider whether you’d like to be protected and how easily your money could be separated, if need be. 

It’s also important to ensure you’re getting the most from your money – whether it’s managed together or separately, it’s a good idea to have a budget. And finally, let us know if we can assist you in any aspect of setting up your financial lives together. 

 

i http://www.familycourt.gov.au/wps/wcm/connect/fcoaweb/family-law-matters/separation-and-divorce/defacto-relationships/

 

 

© AMP Life Limited.