For many, getting married is just a part of life. But the percentage of those that choose to simply live together and forgo the formality of marriage is on the rise. If you are one of those who prefer simply to live with your partner, here are some facts to consider:
When buying a house, it may not be a wise idea for one to simply buy the house while the other pays. Keep in mind, the house will belong to the person with the name on the deed. If you aren’t married, the law doesn’t make an exception or offer any protections to you financially. Verbal agreements don’t matter; if you’re not on the deed, you don’t own the house.
On the flip side, if your name is on the mortgage, and the house is in your name, if you break up the house is legally your responsibility. If you are the sole owner, then your partner isn’t responsible for payment if you break up.
It’s important to make sure you also have a will. If you are married and don’t have a will, you have some level of protection, but if you are simply living together you are considered strangers in the eyes of the law, regardless how long you’ve been living together.
Finally, regarding health insurance, your partner may be covered by your employer’s health insurance plan in some cases. But beware, these benefits may be taxable to you. So make sure you check in advance to make sure there are no surprises.
Bottom line, living together doesn’t necessarily mean your money is co-mingled. So if you are going to do it, make sure you are smart, talk it over, and do it right.