You’ve been going out for a few years now and you’re thinking about moving in together ... what could go wrong? Plenty, if you don’t do the numbers.
One of the benefits of de facto living is the freedom of knowing you can pack up and walk out the door if things don’t work out, right? Well, not quite.
There’s currently a bill before the NSW parliament that could see couples who live together for two years or more financially chained for the rest of their lives – just like married couples. So, before you go buying his and hers matching towels, create a money plan to make sure domestic bliss doesn’t turn into a financial nightmare.
Let’s talk about money, baby
“It’s easy to forget about finances when you’re completely in love,” says CLEO’s resident cash expert Jody Fenton (boutiquemoney.com.au). “But we all bring financial baggage into our relationships. That’s why it’s so important that you sit down with your partner and talk about your financial situations.” Remember to be honest, because the truth has a habit of coming out.
Let your money do the talking
Just like you test out a car or a pair of heels before you buy, have a trial run with your money too. Before you do the big move in, find a common financial goal (a.k.a. an excuse for a holiday), split the cost equally and see how you both cope.
Identify his cash personality
Are you a scrooge and does he make Paris Hilton look like a granny shopper? Having different money habits can lead to problems. “Look for signs like recklessly shouting drinks, hiding bank statements, or having tons of credit cards,” advises Fenton.
Clarify each others’ finances
Joking about taking half of what he owns is fine if both of you started with the same amount, but that’s not always the case. De facto laws vary from state to state, so stick to the basics. “If you’re bringing more than $5,000 into the relationship, speak with a lawyer about a co-habitation agreement.”