Discuss your debts. The average person in the UK is £8,000 in debt (excluding mortgage repayments), with 25 to 34-year-olds the most indebted. If you’re combining your finances, figure out whether you’re going to combine your debts too and repay them together – or keep them separate and pay them off as individuals. Talk about which debts you need to prioritise.
Decide on a fair way to split bills and save for joint goals; this can avoid arguments if you don’t earn the same. One method is to contribute the same proportion of your income to a joint savings account, and split the bills accordingly.
Come clean about your credit history and credit record. When you and your partner open a joint bank account or take out a joint loan, your credit records are linked together. If your partner has a very poor credit rating, you will inherit that rating too.
Face up to a potential breakup. Consider making a Living Together Agreement, which sets out who will pay for what and who will get what in the event of a separation. Similarly, make a will if you have shared assets, and protect each other with life insurance if you borrow a shared loan or joint mortgage.
Respect your partner’s attitude to spending and saving. Allow each other as much independence and autonomy over money as possible while sticking to the financial commitments you have made to each other. Go easy on the shared spreadsheets.
Sources: GoCompare, FCA, Relate, Experian, the Money Charity, LIBF, Charles Stanley, Advice Now, UK Council for Psychotherapy
