10 Personal Finance Tips for Unmarried Couples

Nowadays a lot of people are choosing to live as couples without being married. One major reason many people make that choice is because of their financial situation--in some cases it?s simply not financially feasible to get married. If you find yourself in a similar situation, the following personal finance tips for unmarried couples may be of interest.

Keep Finances Separate

One of the primary concerns of unmarried couples is how they?re going to pay their bills. In most cases, one person will make significantly more money than the other one does. Even if you get along with a minimum of difficulty, there may come a time when you argue over finances. In order to ensure you?ll be able to dwell as a couple without disagreeing about money matters, it would be a good idea to keep your finances separate, as much as possible. Each person should pay their own bills and maintain their own bank accounts.

Eliminate Debt

Eliminating debt is a good idea for any couple, and especially so when the partners aren?t married. Without the benefit of a marriage license, there would be no legal way to hold another person responsible for a debt, if the couple breaks up. Keeping that in mind, it would be a good idea to pay off any debt either person has as quickly as possible, so the debt won?t become an issue.

Don?t Share Assets

Another legal consideration is shared assets. Unless you get married, it?s probably not a good idea to buy a house or an automobile in both names. If something happens to break up the couple, it could become a tangled legal matter to determine who would get to keep the items.

Stay Away from Borrowing as a Couple

It?s also a good idea to refrain from borrowing money jointly. The same issues as carrying common debt and sharing assets could come up. If there is a conflict, owing money as a couple could become a legal quagmire. It could take a long time to settle the situation.

Talk about Your Finances

Because financial troubles could cause serious problems within your relationship, it?s extremely important to talk about money issues. You may not have the same view about how to spend your money--what to buy or not buy--as the other person. One of you may want a big screen TV, while the other thinks a dishwasher is more important. The more you know about your partners desires ahead of time, the easier it?ll be to make decisions.

Have a Plan

Money matters are important. There?s no getting around it. Without enough money to pay bills, you will constantly be struggling. Early on, before you get too deep into your relationship, you should come up with a plan to make sure you?ll be able to pay your bills, in full and on time.

Keep It Simple

When you do sit down and talk about how you?re going to meet your financial obligations, you should try and come up with a plan that is simple, yet effective. You need to discuss openly how much each person makes, and what amount of their income will be needed to pay the bills. The better prepared you are ahead of time; the easier it?ll be to become financial solvent as a couple.

Discuss Long-Term Goals

Although it?s important to have a financial plan in place, simply to meet your present financial obligations, it?s also essential to know where you?re going financially. You need to discuss your long-term goals. Make sure you have similar interests. Do you plan to marry somewhere down the line? How much money will you need set aside in order to have children? Without a plan, you may never be fiscally prepared for the future.

File Tax Returns Separately

Unless or until you actually get married, it would probably be a good idea to file separate tax returns. There are advantages to filing jointly, in some cases, but for the most part you?d more than likely be much better off filing separately. It may be a good idea to consult with a tax attorney or an accountant to find out what you best course of action should be.

Don?t Forget Legal Matters

Just because you?re not married, doesn?t mean you should forget about legal matters, such as a will, or a power of attorney. You never know when something will happen, and one or the other of you will be left on your own. Having a power of attorney in effect, or a binding will, enables the other person to get on with their life.

Guest post from Jaime Castle. Jamie writes for OnlineDating.org.

Source: http://thedebtweowe.com/10-personal-finance-tips-for-unmarried-couples

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