Married life may not be for everyone, but living with your significant other comes with its own set of financial challenges. Sure, cohabitating couples enjoy some of the same financial benefits their married friends do, namely shared living expenses: one mortgage or rent, shared utilities, combined grocery bills, etc. However, this type of living arrangement has some economic drawbacks.
Did you know that if you aren’t married but open a joint bank account with your partner, half of all deposits you make to that account are considered a gift to your partner? And, if over a certain dollar amount, those “gifts” must be declared as such on your partner’s tax return? Also, despite your commitment to each other, you are not considered family when it comes to medical matters, nor will you be each other’s default beneficiary. Before committing to not tying the knot, be sure you have the right legal documents in place to protect your financial interests. To learn more, read the Forbes article, “Unmarried and Living Together? Be Aware of These Financial Challenges.”