Money has a major influence on a relationship. Different opinions about spending money can break a relationship. This certainly applies if there is not much money to spend. In a relationship it is important to make good agreements about how to deal with the available money. For couples who are not married in community of property, it is wise to maintain clearly separate bank accounts. This way you have insight into who is what. This does not seem very important in a relationship, but in the case of a broken relationship it can prevent many problems. Cohabiting couples are wise to draw up a cohabitation contract. This is not only wise to record how the finances are divided, but also in the event that one of the partners dies, having a cohabitation contract is crucial.
It can be useful for partners who live together, but also for married people, to keep separate accounts. Everyone has their own account and each month a pre-agreed amount is deposited into a joint account to pay the fixed costs. The partners can spend the remaining money as they see fit. This is a useful method to maintain insight into financial matters. In this way, one of the partners can be prevented from spending too much money. Besides the fact that it is useful, it can also prevent many problems in the relationship. One of the partners cannot spend too much, which means that the other partner also has to deal with shortages.
Usefulness of a cohabitation contract
Partners who move in together assume that they will stay together forever. However, the facts show that most relationships end sooner or later. Once people living together break their relationship, it is difficult to determine what each is entitled to. In the event that one of the partners dies, the remaining partner has no right to the deceased’s assets. According to inheritance law, they go to the legal heirs. If he has children, the children inherit the entire property. If the deceased has no children, the assets go to the parents and siblings.
Debts incurred by one of the partners
People who live together may also have to deal with debts incurred by their partner. Legally, the debts remain the responsibility of the person who incurred them, but in practice the partner will also have to pay for the debts. These are often entered into jointly and it does not matter where the money was spent and by whom. In a marriage in community of property, a debt is always a joint debt. All assets are joint, including debts.
Introducing debt into a marriage
When a marriage is solemnized in community of property, existing debts become a joint problem. The partner who previously had no debts is also jointly and severally responsible for the partner’s debt after the marriage. In this case it no longer matters that the debts arose before the marriage.