Advice for Moving in Together

When moving in together, couples are often so happy about the progression of the relationship that they don't discuss practicalities, such as finances. While it isn't exactly one of those first date conversations, couples need to talk about how they intend to handle finances before moving in together. If you and your significant other need a jump start on preparing finances before moving in together, consider these important points:

Clearly discuss what you'll each be responsible for before moving in together.
While talking about the practicalities may ruin the romance of moving in together, it's absolutely vital to establish how you and your partner intend to split the bills. Are you splitting rent in half, or each paying a portion based on income? Who pays the utilities? Who buys groceries? Are you going to be joint tenants, or is only one of you on the lease or mortgage? This isn't a glamorous conversation, but discussing your financial expectations before moving in together is going to help you avoid trouble down the road.

Decide whether you'll maintain joint or individual checking accounts.
Another thing to discuss before moving in together is whether you'll be consolidating your checking accounts, or keeping things separate. Many couples choose to keep separate checking accounts until marriage or beyond, while others feel that refusing to combine checking accounts is a trust issue, and can't conceive of a world where finances are separate. Make sure you and your partner agree how you'll handle your checking accounts before moving in together.

If you do open a joint checking account, consider allocating a large chunk of your income to joint checking for household expenses, while still maintaining an individual account for discretionary income. One of the biggest financial arguments any couple has after moving in together is how they spend free cash, so setting aside a portion of every paycheck into an individual checking account eliminates that potential argument.

You should discuss your long-term goals when moving in together.
It may not be one of those great first date conversations, but by the time you and your partner are talking about moving in together, you should be discussing your long-term goals. Do you potentially want to buy a home together, and so do you need to adjust your savings and investment plan? Do you want to make your partner your beneficiary on any life insurance policies? Is there a baby in the future, and if so, how does that impact you financially?

These can be pretty heavy conversations, but they're vital for couples considering moving in together. You need to start off on the right foot with your financial planning when moving in together, instead of making assumptions and then blindsiding your partner down the road. Decide how much of your financial planning you'll handle as a couple, and which decisions are made individually. If you discuss these issues before moving in together, you'll have one less strain on your relationship and a better chance at success.