Money

When you're setting up home with your partner, money can easily become the cause of arguments so it's worth discussing a few things from the outset, including who pays for what and how. Opening a joint account is one option, the benefits of which are:
  • It's a convenient way to manage your money - you know where all the money is at once.
  • Paying bills is easier - you don't need to decide whose money is paying for what.
  • It gives you a chance to get a better rate of interest by having more money in one account than in two separate ones.
Depending on how you want to operate the account, you can set it up so only one or both signatures are needed to authorise a transaction. However, the latter can make it difficult to operate the account, especially if one person is away.

There are some other points to consider:
  • Each partner has access to the entire funds and could feasibly spend all the money without the other's knowledge - although having both signatures required for transactions could stop this.
  • Each account holder is responsible if the account goes overdrawn - regardless of whose transactions took the account into the red - and is responsible for repaying the debt.
  • Each account holder is entitled to see information on every transaction on the account - you can't hide how you've spent the money.
  • If either partner has a poor credit reference it could affect how easy it will be to open an account.

Some other facts about money
  • If you are unmarried (or not in a civil partnership) and your relationship ends, you have no immediate right to maintenance payments from your partner for your own benefit - even if you gave up work to look after your children (although maintenance payments would have to be paid for the children).
  • Most pension schemes offer benefits to the partner of the person in the scheme (see our Inheritance section), although if you are unmarried you need to check you are covered.


The common law myth

The number of people living together as co-habiting couples is on the rise, increasing by 260% in the last 25 years*. Among many of those who remain unwed, there is a belief that, after a certain amount of time, they will be considered 'common law partners'.

THIS IS UNTRUE

Not only does the term 'common law partner' not legally exist, there are currently no laws to protect unmarried couples in the same way as there are for married couples or civil partners - they are effectively treated as separate individuals. If you are in this situation, make sure you know your rights and, if necessary, seek legal and financial advice to ensure you are in the best possible position.

*Data on co-habitation from Living in Britain:
The 2002 General Household Survey.

Living together agreements

Moving in with your partner is a happy time and so you're unlikely to want to consider what might happen if you split up. However, taking time at the outset to lay down a few 'ground rules' can save a lot of stress and heartache should anything go wrong. A useful tool to do this is a 'living together agreement' covering areas such as who pays which bills, how personal possessions would be divided if you split and what would happen with your property if one person had to move out. These agreements are not legally binding but, if you had one, a court might take it into consideration when deciding a case. A number of websites have draft agreements you can use - see our Links section.