How Cohabiting Couples Should Protect Their Assets and Finances

As a law firm dedicated to helping our clients secure their financial futures, we recognise that the landscape of relationships and living arrangements has evolved significantly in recent years. More couples than ever are choosing to cohabit before marriage or even without plans to marry at all. This shift in attitudes presents a unique challenge when it comes to protecting individual assets and finances — but it’s a challenge we can help you with.

In this article, we discuss the steps that cohabitating couples should take to protect their assets and safeguard their finances.

Have open and honest conversations about finances

The foundation of any successful relationship, whether romantic or financial, is open communication. Sit down with your partner and discuss your individual financial situations, goals, and expectations. Being transparent about your assets, debts, and financial aspirations will help you paint a picture of your financial future.

Keep detailed records of individual contributions

When you begin living together and sharing expenses, it’s important to keep a clear record of who contributes what. Keep track of rent or mortgage payments, utility bills and any other expenses you share. Maintaining these records will help to establish a clear understanding of each person’s financial contributions.

Maintain separate bank accounts

While it may be tempting to merge your finances entirely, maintaining separate bank accounts can help protect your individual assets. You may choose to open a joint account for shared expenses, but keeping your primary accounts separate can ensure that your personal assets remain your own. This is particularly important if one partner has significantly more assets or debt than the other.

Understand property ownership and titling

Make sure you understand the different types of property ownership before you buy a property together. Different types can affect your financial security and impact you should you separate. For example, ‘joint tenancy with right of survivorship’ will ensure the surviving partner inherits the property in the event of the other’s death.

Create a cohabitation agreement

A cohabitation agreement is a document that sets out the financial arrangements in the event that a cohabiting couple separates. We strongly recommend creating a cohabitation agreement should you choose to cohabit. A well-drafted cohabitation agreement can provide both parties the peace of mind that their financial situations are secure regardless of what happens in their relationship.

A cohabitation agreement is an important step to protect your assets, safeguard your finances and ensure you and your partner maintain a happy and healthy relationship. Goodwins Family law specialises in drafting cohabitation agreements that address your unique circumstances and goals. 

Contact us today to ensure your financial future is protected.