Co-inhabiting: the Commitment, Cost, and Complexity

Marriage does not define commitment, but understanding and agreeing about financials in a relationship does. It's a hard step, there's no doubt about it, but an important one. In today's age, millennials are waiting to get married for longer, only about 26 percent of them aged 18-32 are. Instead, they do not comingle their assets and just hold a joint account for shared expenses and vacations. Today we will address some of the common decisions that unmarried couples face and the ramifications of different ways to deal with it. Let's face it- it's about time you nailed down the financials in your relationship- and we are here to help you do just that.

Home

If the title of a home is in one person's name, the owner can sell without the other partner's consent regardless of financial contributions made. If the titleholder passes away without a will or trust, the estate would then go through probate and the house would pass to the next of kin. The surviving partner would be without a house and a significant other. A home comes with generous mortgage interest and property tax deductions. That being said, layers of complexity await an unmarried couple. They must first both be on the title and mortgage of the home and then coordinate their tax returns to claim the deductions; where a married couple does not have to. On top of that- who pays the property taxes and maintenance costs is up to you, but you might want to see an accountant for the best way to save the most come April 15th.

Break-Up

I know it's not the first thing on your mind, but it is always a possibility. In any case, you should draft a relationship agreement, which can be done inexpensively on Rocket Lawyer or LegalZoom if you can't afford a lawyer. If either of you have significant assets or liabilities, we strongly suggest getting an agreement through an estate attorney. It should mention how you will manage and pay for ongoing expenses such as housing, food, childcare and utilities, who has ownership to what, and in the event of a breakup so that you can split amicably and avoid court.

Loans

Generally, when two people first start cohabitating they do not jointly own many assets. This would protect a partner who has a high credit score if the other has a poor score, namely if they apply for a loan together and get rejected it would hurt the partner with the high credit score more.

Children

The number of children living with unmarried parents has risen from 0.9 million in 1996 to 1.8 million in 2012. In addition, there are an estimated 6,000 same-sex couples, not in a civil partnership, who have children. Adoption planning is highly specific to where you live, and we highly recommend consulting a specialized attorney in the State you reside. If a child is adopted, you can do a second-parent adoption in states that allow to give the non-biological or secondary parent equal rights. If the secondary parent did not take that step, a biological parent needs to be found and legal steps must be taken to be recognized as the rightful parent. In doing so you would grant the child beneficiary entitlements and survivorship income benefits should something happen to you.

Rights

To make it simple there are a few things you should do, some of which need to be drafted by an estate attorney

  • A living trust- To whom does property held in a trust pass.
  • Beneficiary designations- Accounts passes directly to beneficiaries without going through probate, make sure they are on all accounts, if you need help you can call your custodian.
  • Power of attorney- All this means is the other party the right to make decisions and sign documents on your behalf, it is a safe guard against the unknown.

As your salaries increase and your relationship grows, you can reassess how much each is paying for things, which should be done at least annually. It may be best to sit down with a financial advisor to discuss these things as mistakes could lead to difficult predicaments. While not being married has its pros and cons, planning for particular what-if’s that married couples don’t have to will help you tremendously when things go awry. 

Investment Advisory Services are offered through Crafted Finance, LLC, a registered investment adviser. Please remember that securities cannot be purchased, sold or traded via e-mail or voice message system. This advertisement and any documents, files or previous advertisements may contain information that is confidential or legally privileged.  If you are not the intended recipient, you are hereby notified that you must not read this transmission and that any disclosure, copying, printing, distribution, or any action or omission of this transmission is strictly prohibited.  If you have received this advertisement in error, please immediately notify the sender by telephone at (650) 336-0598 or return and delete the original advertisements and its attachments without reading or saving in any manner.

Share This Blog Post:

Kristin Harad

Marketing Coach

Step right up and meet Kristin Harad, the Marketing Coach wizard! Guiding businesses through the intricate maze of marketing, Kristin combines her smarts, pizzazz, and a hefty portfolio of wins to show she’s the real deal. Ever wonder what makes a brand pop and a strategy rock? Kristin’s your answer, lighting up the marketing world and turning potential into prowess.

Boasting three decades in the marketing arena, Kristin’s more than just a seasoned pro – she’s a beacon. Whether she’s spotting the next big trend or identifying a golden opportunity, she’s always got her finger on the pulse. And the cherry on top? Her rock-solid commitment to catapulting her clients right to the top of the business game. Dive into the marketing world with Kristin, and watch magic happen!

Jon Fogg

Content Creator

Jon Fogg is a dynamic and innovative content creator who has been making waves in the digital realm. With a passion for creativity and a flair for storytelling, Jon has captivated the financial world through his engaging and diverse content.

When he’s is not working on an SEO blog or case study, you’ll find him enjoying local art galleries or a phenomenal read. Friends and colleagues often commend him for his clear enthusiasm and dedication, which is evident in every project he undertakes. 

Kingston Hollman MBA

Compliance

Meet Kingston Hollman, the compliance guru everyone’s been talking about. With a sharp mind for regulatory ins and outs, Kingston is all about keeping businesses on the straight and narrow. That’s why he’s a go-to in the compliance world!

Sporting an MBA under his belt, Kingston’s not just about book smarts. He knows the fine dance between business strategy and staying in line with the rules. And guess what? He’s mastered it. Ensuring companies sail smoothly through the often-stormy waters of compliance is his game.

From the get-go, Kingston’s been crafting top-tier compliance programs, tailored just right for all sorts of industries. It’s his eye for detail and that knack for spotting the little things that make him stand out. He doesn’t just set up a system; he fosters a whole vibe of staying compliant, making sure everyone’s on board.

Jessica Martineau

Client Operations Manager

Jessica is a seasoned professional with a diverse background, bringing a decade of expertise across multiple industries. A proud graduate of SPU, her journey in the professional world is marked by significant accomplishments.

With nearly eight years dedicated to managing projects in the graphics and built environment sectors, Jessica has honed her skills as a meticulous Project Manager. This tenure has instilled in her a knack for thriving within organized structures while fostering robust client relationships, a hallmark of her professional ethos.

Her experience in the Finance industry spans almost a decade, where she has held pivotal roles as Lead Client Operations Manager and Director of Operations. Notably, her FINRA SIE Certification stands as a testament to her commitment to excellence.

Jessica’s strengths lie in cultivating enduring client connections, fueled by her passion for delivering thorough solutions. She finds joy in understanding and engaging with her colleagues, nurturing a cohesive work culture.

As a Pacific Northwest native, Jessica enjoys hiking, camping, and skiing. She loves reading, attending live music, plays, and comedy shows. Always a foodie, she delights in discovering new restaurants and revisiting old favorites, especially if there is a water view.

Most importantly, Jessica’s world revolves around her family—her amazing husband, Lee, and their two great kids. They are her inspiration and the anchor to her life outside of work.

Dionne Kelly

Executive Assistant

Let’s dive into the world of Dionne Kelly! Born in St. Kitts and with her roots deep in Barbados, Dionne’s been globe-trotting from her island homes to Canada, the USA, and Belize. Got a love for tropical spots? So does Dionne. Her passport’s got stamps that tell tales of sun, sea, and a bunch of awesome adventures.

Now, when it comes to her profession, Dionne’s the real deal. Over 20 years in the game as an Executive Assistant, she’s been the secret ingredient for bigwig C-suite execs. Think of a challenge, and Dionne’s likely tackled it head-on with her unbeatable organizational skills and eagle eye for detail. 

Oh, and did we mention she’s a foodie? Dionne’s taste buds have danced across diverse culinary landscapes, adding a sprinkle of global flavor to her persona. In the world of executive support, she’s a powerhouse, always two steps ahead and ready to make things happen. 

Joe Wride CFP®

Founder & CEO

Meet Joe Wride, the president and founder of Crafted Finance. With a knack for pension and investment management, insurance, and financial planning, Joe’s all about offering top-notch services without breaking the bank. That’s why he started Crafted Finance!

A proud Finance major from Washington State University, Joe’s got the credentials to back it up as a Chartered Life Underwriter and CERTIFIED FINANCIAL PLANNER™ Professional. Since 2009, he’s been helping individuals, families, and pension plans make sense of their finances. Joe’s even on the board of the Financial Planning Association’s Puget Sound chapter. Check out his LinkedIn profile here.

Joe gets that everyone’s got their own money story. That’s why he’s crafted a unique process to help folks of all stripes manage their finances, whether they’re flying solo, raising a family, or running a company. He’s all about learning and growing to make sure his guidance is just the right fit for his clients.

When he’s not crunching numbers, you’ll find Joe enjoying the Seattle life. He’s into skateboarding at Alki beach, biking, golfing, snowboarding, hiking, and camping. Sports fan? You bet! Joe’s a die-hard supporter of the Cougars, Mariners, Seahawks, and Sonics. But what really matters to him is family time with his wife Jessica, daughter Ocean, and dog Kanga. Joe’s excited to welcome more kiddos into their home through foster care and adoption in the future.

Download for Free

Property Is Power.

Let us know which email address to send this Free eBook to down below:

Please enable JavaScript in your browser to complete this form.
Name
This best describes my experiance in real estate investing:

Get Your Financial Fix!

Subscribe So You Don’t Miss Our Latest Planning Tips.

Search Site