Moving in with your partner is a big step, one that should be carefully considered, especially when it comes to splitting shared expenses. We know that a few things sour romance more than money talk, but it has to happen in order to avoid bigger disagreements down the road.
This couple tried doing that before moving in together, but faced some challenges along the way. Since their incomes differed quite a lot, the girlfriend suggested splitting the costs based on their salaries, but this didn’t seem like a good option to the boyfriend, who, upon such an agreement, would have to pay more.
Talking about money before moving in with your partner is essential
Image credits: Yunus Tuğ / Unsplash (not the actual photo)
During one of such talks, this couple couldn’t agree on how to equally split their shared expenses
Image credits: Gabriel Ponton / Unsplash (not the actual photo)
Image credits: Jordan González / Unsplash (not the actual photo)
Image credits: Puzzleheaded_Feed460
The guy later clarified some things:
Image credits: Getty Images / Unsplash (not the actual photo)
If partners want their contributions to the household to be truly equal, splitting expenses 50/50 isn’t always fair
The most straightforward way couples living together can split their shared expenses like rent, utilities, and food is to go the 50/50 route. Seems fair, right? Well, if partners want their contributions to the household to be truly equal, splitting them in half doesn’t always result in an even share.
It rarely happens that both partners’ incomes are the same, so if a couple agrees to do the 50/50 split, one person may be putting their entire paycheck towards shared bills, while the other will have a lot of extra money remaining. This might result in debt for the person who contributes all their money to the household, while the other saves.
Therefore, the most equitable and fair way to split expenses is by dividing them based on income. That is, if a couple prefers to share costs equally, because what works for one couple may not work for the other. To split costs based on income, the couple will have to use some math, but it shouldn’t be that complicated.
Essentially, how this works, according to Ellevest, a women’s wealth and financial guide, is that partners should keep their individual bank accounts and open a joint checking account, which will be used to pay the shared bills. Then comes the math, which is better explained by experts at Ellevest themselves:
“Add up your total household income. Then calculate the percentage of that total each individual partner/spouse makes. Now add up your total monthly shared expenses (rent/mortgage, utilities, groceries, joint investing or saving goals, etc). Then multiply that total by each of those two percentages from step one to calculate how much each of you should contribute.”
A visual representation and example of this can be found in this image. After the calculations, both parties transfer their share into the joint account every month, and whatever is left, they can spend however they like.
Image credits: Priscilla Du Preez / Unsplash (not the actual photo)
What matters most is agreeing to split the expenses in a way that works for both partners
Of course, this might not work for every couple out there. What matters most is agreeing to split the expenses in a way that both partners feel comfortable with.
“No matter how you choose to break it up, the most important thing is that you’re both on the same page about your finances—how much is coming in, how much is going out, and what long-term financial goals you want to hit together. Then make a plan to get there that works for you,” agree experts at Ellevest.
Time and time again, money proves to be a leading cause of breakups and divorce, so having that dreaded money talk and putting a financial plan that satisfies both parties could prevent tensions and disagreements caused by money.
The guy provided more information in the comments
Some commenters thought the guy was right to suggest a 50/50 split
While others—not so much
Some even believed that the couple isn’t compatible to have a future together
