You have just purchased a property and your partner is going to move in with you. Yes, but how can we share the expenses so that everyone benefits?
A reader finds herself in this situation and wonders how the expenses could be divided between her and her spouse. She plans to ask him for a monthly rent in which she would include half of the mortgage and utilities. Is this a good option? To find out, we asked Véronique Joanis, speaker and trainer for L’Argent… Let’s talk about it.
Explore each person’s financial history
At first glance, the trainer notices that the question of ownership of the house is not addressed. “If one of the two pays half of the mortgage without being co-owner, they will contribute to their spouse’s assets, but will not accumulate assets themselves,” she mentions.
If this is not understood and accepted by the partners, the context could end up creating frustrations. “This is why it is essential to start by discussing each person’s personal financial history, to talk about their fears for example. We must explore the dynamics of finances through family and couple experiences,” she recommends. In this specific case, the new owner may have had a bad experience in the past, or they are simply too new a couple to want to commit to purchasing a joint home.
Following this discussion, we should also try to learn more about our partner’s relationship with money: is this person a cicada or an ant, what are their financial values, what is their income, does she have the means to pay for what she has committed to, is she in debt, has she ever been in a situation of insolvency, etc.? So many questions that will help you get to know your partner better and avoid unpleasant surprises!
In order for this conversation to go smoothly, Véronique Joanis recommends adopting a positive approach, focused on projects and common objectives. This way, we can approach this delicate subject without passing judgment or causing tension.
Ensuring everyone’s financial security
Regarding the sharing of expenses, the trainer advises aiming more for equity than equality. “Paying half and half can put one spouse into financial difficulties if the income is not relatively similar,” she says. She suggests instead aiming for 80% satisfaction for each, to the extent that both will have to make compromises and accept certain losses.
Paying expenses in proportion to income is not necessarily the ideal solution either if there is a strong disparity in financial means. “The person who earns the least will be disadvantaged, which leads to significant disparities in living standards,” she notes. This is why we should show flexibility, for example by proposing that the more financially comfortable spouse pays for the vacations, outings and leisure activities of the one who earns the least.
We can also adopt different management methods: we pay 50/50 for the assets, but pro rata for the other expenses. “The general idea is to ensure that everyone can maintain their financial security. You have to be flexible and think in terms of couple projects. For example, if we want to go on vacation in two years, one of the spouses could decide that the money earned thanks to the overtime they work at work will be paid into an account dedicated to this trip,” illustrates Véronique Joanis.
ADVICE:
· Each spouse should prepare an annual budget, which will give a better idea of what will be left in their pockets after expenses are paid. It is also a good way to ensure that the financial management method chosen is fair.
· Do not hesitate to review the budget after three months to ensure that it holds up and adapt it as needed, but also to each major change (purchase of a house, arrival of a child, new employment, job loss, etc.).
· If the couple is not married, a cohabitation contract can be useful to determine the sharing of responsibilities and contributions of each person during cohabitation and in the event of separation.
2023-11-11 05:02:37
#partner #rent
