by Lawanda Ray

Created on: May 14, 2007

Too Soon to Cohabitate?

Do you find yourself buying two sets of personal items; one set for your place and one set for your boyfriend's place? Is it getting harder and harder to remember the last night you slept by yourself? Do you always speak in terms of we, even though by State and Federal tax standards you are single? If you answered yes to two or more those questions, it may be time to think about Cohabitating, more affectionately known as "shacking up."

No longer the taboo topic known for making parents all over the world cringe in horror. The number of unmarried couples living together has increased over the years, and for good reason. With popular but depressing statistics on the divorce rate holding pretty steady above 50%, more and more young adults are deciding to test the waters, before diving down that rabbit hole. And just like with married couples, the walls of that black hole are plastered with financial problems.

Before you start the manhunt for moving boxes, here are a few things to consider:

1. Who Will Pay What
It is imperative that you figure out how your bills will be divided, before moving into together. This is to allow you to divide your bills based each person's on ability to pay. The easiest scenario is to split the bills in half. Yet, the reality of this method may be ineffective. Generally with young couples, one partner makes more than the other; and let's face it, in your twenties to early thirties you are in the land of entry-level jobs. When you look at what each partner makes, with the actual "personal bills" that they bring to the table. The ability to pay method will save you a lot of resentment and headache in the long run.
2. Where Is the Flex Room
Once you decide who is going to pay what, the next step is to have away of taking care of necessary bills if one person should come up a little short. Because, things happen. A flex plan may incorporate other living necessities that are less expensive than paying an actual bill. For instance, you may decide that instead of paying half of the electric bill; they can take care of the grocery shopping for the month. The upside to having this plan is that your love is still contributing to the household.
3. Don't Be Caught Off Guard
When you move in with someone, there is a sense of financial interdependence. You rely on the other person to pay their fair share and vice versa. The last thing you want is financial surprises. Make sure you discuss plans in advance. A common financial pitfall scenario for young couples is that once you move in together; one of you may want to go back to school full time. This type of decision affects both of you and could have a huge impact on your ability to make ends meet.
4. Know Each Other's Spending Habits
Before you call the movers, make sure you are aware of, and ok with, each other's spending habits. The stereotypical financial make up of a couple includes a spender and a saver that can find a happy medium. But, what if you are both spenders. What is your poison? Everyone has "high dollar habit." This is that one thing you buy compulsively that you either don't need. Generally, when you think of such habits, your mind goes to cigarettes, but it could just as easily be latte's, or DVD's. If one of you is more practical than the other, how will that person react to the other's spending? Common arguments occur when one person spends money on something the other just does approve of, or understand.

Couple Cohabitation can be a great gateway to marriage; or, the blueprints for an inevitable divorce. Regardless, developing a plan for handling finances will prevent a few arguments in both the long and short run, and should be considered before the first box is packed.

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