You’ve been dating for a while and you’ve decided to move in together, but in a climate of romantic happiness, when is it time to talk about being financially exposed?
It may not be a comfortable candlelight conversation, but the discussion of the financial risks of a de facto couple should not be an emotional one-on-one, according to Westpac Massey Fin-Ed Center Director , Pushpa Wood.
Becoming financially at risk in a relationship should not be seen as a sign of commitment either, says Wood.
“Factual relationships and marriages are no longer life commitments, so you must survive and thrive after a breakup. If you enter a relationship at a mature age, this can also have a financial impact on your children. So you have to think about protecting everyone involved, “said Wood.
Once a couple has lived together for three years in New Zealand, it is subject to the law of ownership (relations) and equal sharing of other property. It is very easy for de facto couples to be subject to the provisions of the 1976 law without realizing it, says Auckland lawyer Jennie Hawker.
“Whether you’ve been together for three months or three years, if you have assets to protect, you should talk about an agreement. Similarly, those who need to protect their assets in a longer relationship (for example with a large and sudden legacy) can still sign an agreement at any time, “added Hawker.
Woods advises couples not to consider this as an emotional discussion.
“I especially encourage women to put themselves in a financial situation with their eyes and ears wide open before making an emotional decision. This should not be an emotional decision, it should be considered objectively as a financial risk. ”
Even if both parties earn similar salaries and do not yet have valuable assets, the risks to consider are how each of you individually manages the money.
If couples decide to open a joint account before the expiry of three years, the risks must also be taken into account, for example, by examining the motivation of the decision, recommends Pushpa.
“It’s a joint account that makes life easier, for example, to pay utility bills and rent, or is it a deeper emotional problem, like showing that you’re attached to the relationship,” he asks. -she.
“Always understand what the risks are. If one person is more responsible for money than the other, then you must consider the risk that the irresponsible person spends too much. They might not realize that you have to discuss before buying an expensive item or taking an overdraft.
“Especially if you’re used to operating as an individual and then you’re in a place where it’s a joint decision and you’re making individual decisions.” That does not mean it does not work not, but you need boundaries and guidelines, “added Woods, who strongly believes in prenuptial agreements.
“I have seen so many cases where men and women have been exploited. Be careful to protect what you have and what you are building together, “she said.
Jennie Hawker, a partner at Wynyard Wood Lawyers & Notaries, encourages couples to hold the conversation, even if they do not want a marriage contract.
“If the couple is younger and wants to accumulate assets together, they may decide not to bother with an agreement, even if one wins more than the other. Everyone has a different point of view on what should happen to their property and that’s why there are not two identical agreements, she said.
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