Financial Planning for Unmarried Couples
There had been an increase in cases of unmarried couples living together in the past few years. A report from the census bureau quoted a 13% growth in the number of instances of cohabitation before marriage. It’s a widespread phenomenon that’s most common among younger couples.
There are several reasons why unmarried partners live together. For most, cohabiting is the first step towards marriage. They see living together as a way to test-drive their relationship to determine if it will work.
Some couples can’t afford to get married and would instead use the money that the wedding would cost to do other things.Like buying a house or paying off debts. Others decide against getting married because it may mean losing certain valuable benefits.
Notwithstanding the reason, there are specific concerns with unmarried couples, especially as regards to financial responsibility and property ownership.
Since current laws do not give cohabiting couples the same legal right as those married, experts suggest the need for unmarried couples to take extra steps to protect their finances and assets. Though it may not sound romantic at first, it will save you lots of stress.
According to Debra Neiman, a Principal at Neiman & Associates in Massachusetts, unmarried couples living together should have a domestic agreement outlining the financial responsibility and rights of each partner. It should state how they share their assets, keep bank saving and pay expenses. According to her, this will give you some of the protection that’s available in marriage.
The need for a written agreement was highlighted in the case of Jacqueline Dobson and Matthew Griffey. Dobson sued for a part of the proceeds from the sales of Griffey’s farm. She claims he verbally promised to split the property with her and she contributed to its maintenance.
Delivering judgment, the court noted Dobson’s contribution in turning the property into a habitable home; but ruled against her since there isn’t any legal agreement between both of them and she didn’t contribute to the purchase price or mortgage.
Randy Kessler, of the Kessler & Solomiany, LLC, Atlanta, asserts that if you decide to co-own things, then you should ensure to put everything in writing. Who gets the cosigned car? Who gets the house? And so on. Spell out the terms of ownership. You may decide to get the services of an attorney to look through the document.
Wealth Building Strategies
The wealthiest people are those focuses on building wealth; they understand the theory of saving and investing and direct much energy toward achieving their financial goals.
So much have been said of the process of building wealth, and most of it has to do with developing wealthiest habits. You need to master the art of controlling your money, and using it effectively to grow your wealth.
We often find it difficult to learn and follow wealthy habits. We see it as something meant for people with a level of expertise or a lot of cash, or that it’s just too difficult to practice.
Below are some of the wealth Building strategies to follow to grow your wealth. These habits, when put into practice, bring you one step closer to your financial success.
Learning to Save
The process of building wealth is gradual; you have to accumulate it over time, except you have a superior business idea, that will sell over and bring in tons of cash.
You need to develop and maintain a saving strategy aimed at accumulating funds to build your wealth. You don’t need to earn massive amounts to be able to save. Whether you are a working parent, college grad, or a senior citizen planning your retirement, you can save from the little that you earn.
The best way to help you save money is to create and follow a budget or spending plan, which will outline your income and your expenses. Once you know your expenditure, you can then work on reducing the expenses, and allocating more money for saving.
You may have the zeal to save but can find it difficult once you start spending, despite having a budget. To ensure you adhere to your savings plan, you have to develop a strategy to ensure you only pay what’s on your budget.