Thinking of taking the next step with your partner? Moving in together can be great, but there are some financial considerations to consider.
The Financial Coach at Capital Budget Strategies, LLC, Austin’s best Financial Coach, recommends having a frank discussion with your new roomie before signing a lease or buying a house together.
Our Austin Money Coach hopes for the best, but always recommends planning for the financial worst. Surprisingly, not all relationships work out as planned. Without planning, one person can be “stuck” with all expenses, along with a damaged credit score.
Here are some ideas:
(1) RENT & RELATED EXPENSES: Agree on a breakdown of payments, such as the deposit, actual rent payment, utilities, renter’s insurance, Internet connection and streaming services. Remember, if your name is on the Lease or contract, you can be held fully responsible if your partner leaves or stops paying.
(2) BUYING A HOUSE TOGETHER: If you are unmarried, our Austin Financial Coach recommends not having both names on a mortgage. The reason is simple, you might break up, one may move to NYC for a new job, one may lose a job or get sick. Remember, if your name is on the mortgage, you are responsible, even if you partner runs away never to heard from again. Best idea, one partner purchases the house and “rents” a portion to the other.
(3) MAKE A CONTRACT: Best financial move is sitting down together and creating a written agreement. Put everything in writing, including what happens if there is a separation. For instance, you buy a house together and one wants to sell, while one wants to stay. Should we get a dog? Settle these questions before moving in.
If you need assistance with making a contract or need someone to lead a “difficult” financial discussion with a potential partner, our Financial Coach is ready to help!
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