One of the biggest causes of relationship breakdown is financial incompatibility, something many couples discover only after they have already combined their lives.
Most people would never buy a house without reading the contract. Yet many will move in with a partner, share bills, buy furniture and even renovate a home without ever discussing what would happen if the relationship ended.
Financial advisers say those uncomfortable conversations are often avoided because couples are caught up in the excitement of building a life together. Unfortunately, that’s also when costly assumptions are made.
“When a couple takes the plunge to move in together, both parties are taking an emotional and financial risk,” said Sharon Hamman, senior legal adviser at Momentum.
Hamman adds that “most often the parties are caught up in a ‘honeymoon’ phase in the relationship and do not consider all the repercussions if the relationship does not work out or if they come to realise that they are not compatible on fundamental financial issues.”
