Finding a significant other to live with can be a great experience, but it can also lead to financial problems in the event of an unexpected breakup.
If the couple is splitting and one decides to move out, then rent or mortgage and other bills can be a sudden financial and emotional disruption. Just to be prepared, it’s a helpful idea to keep in mind that an emergency payday loan can be the remedy when a relationship falls apart.
The following money planning lessons should be considered by every couple that shares an apartment or home.
- Evaluate the situation carefully before moving in together.
Every couple should think carefully about the pros and cons of a living arrangement before signing a mortgage rent or lease agreement together. Consider income levels, job outlook and financial obligations as well as personal issues. Do not jump to the conclusion that a close relationship requires sharing the same living space. Make sure that the relationship is solid enough to warrant moving in together.
- Decide in advance what happens in the event of a breakup.
It may be awkward for couples deeply in love with each other to discuss the possibility of a breakup, but remember that money is a separate issue and needs to be dealt with on a rational level. Both individuals benefit by developing a backup plan in the event the partners split up, just as in a business. Sometimes couple split because one gets a job offer in another city and the other isn’t prepared to make the move.
- Maintain separate bank accounts.
While married couples have reasons to share joint accounts due to their long term commitments to each other, it’s better for unmarried couples to keep love and money separate until they make such a long term commitment. Sometimes even married couples can have disputes over shared checking or savings.
- Avoid sharing credit.
By keeping credit cards separate, debt responsibilities can be kept separate as well. Credit cards can affect credit scores, whereas an emergency payday loan is lower risk for each individual.