I am one of those people who does not believe in mixing finances before marriages. I know that some people live together for years or forever and never get married. Some people believe that marriage is outdated, but I do not. Here are my financial rules of dating.
Separate Banking accounts
Your money shouldn’t mix. What’s yours is yours and what’s his is his. It might sound odd if you’re living together, but there are risks when you open a joint banking account.
- Fees. If your names on it then you’re responsible for it. Your partner could overdraw the account write a bad check. Both of which could mean owing a lot of fees to the bank.
- Draining. What happens if you break up on a bad note? All your money in the account and your now ex drains the account? The accounts in both names, so there’s nothing you can do.
- Debt. If your new partner has debts that you don’t know about the creditors can then go after the funds in your joint account.
You never know what’s going to happen in the future protect yourself and your future now.
Do NOT save together
This goes hand in hand with separate bank accounts. You should also have separate saving accounts. If the relationship goes south you do not want to lose your life savings to an angry ex. If the account is in both names there is NOTHING you do if your spouse drains the account and leaves you with nothing.
Do NOT buy a home together
Buying a home is a HUGE step, but it shouldn’t be one your taking together if you haven’t said I do.
- No marriage, no protection. When you buy a home as a married couple and then divorce we have divorce court to help settle that, but when your not married who do you go to? Who legally owns the home? What now?
- Your credit. When you buy a house with the person you’re dating you’re putting your credit on the line. If say a year down the road things aren’t working out your credit is still tied to that person because of the mortgage you signed.
- A hassle. Who keeps the home? Who get’s the contents? Do you sell? How are the sale proceeds split up? There are far too many things that could go wrong.
Do NOT buy any other property together
If you’re not ok with just walking away from it don’t buy it, and if you do you need a clearly WRITTEN agreement of who owns what.
- If you buy a car whoever has their name on the title owns it. Plain and simple.
Let’s say you make payments on a car for years, and once it’s paid off it’s put in your spouse’s name. Then, you later split up. That car even though you made the payments alone is now legally your spouse’s car. If you were married it would be the property of the marriage and the court would handle it.
- Toys. Boats, 4wheelers, and whatever else whoever’s name is on the paperwork own it.
Do not enter into a loan together. Remember your credit is at risk. You don’t have the legality of marriage to help you if the relationship goes south. Just don’t do it.
Not to mention what happens if one suddenly dies and there is no paperwork? You as the spouse have nothing. The family will inherit everything in that person name. If the house is in that person name and your not on it then the family gets it too. Marriage is much more than just an I do. Marriage is a legal contract. That’s why we have courts to help us end it.
Linked up at The Thrifty Couple