Cohabitation Nation: The Financials of Living Together Without Getting Married

COHABITATION NATION MORE UNMARRIED COUPLES THAN EVER ARE MOVING IN TOGETHER HERE ARE SOME TIPS TO HELP THEM MANAGE THEIR FINANCES LIVING TOGETHER OUTSIDE THE LEGAL BONDS OF MARRIAGE MIGHT HAVE ONCE BEEN TABOO. TODAY, THAT'S NO LONGER THE CASE -- AND THE NUMBER OF UNMARRIED COUPLES LIVING TOGETHER IS ON THE RISE, WHILE THAT OF MARRIAGES IS DECLINING. IF DONE RIGHT, LIVING TOGETHER CAN SAVE BOTH PARTNERS SOME SERIOUS CASH: A FACTOR THAT, COUPLED WITH THE BAD ECONOMY IN THE PAST SEVERAL YEARS, HAS LIKELY ENCOURAGED COUPLES TO MOVE IN BEFORE (OR WITHOUT) TYING THE KNOT. IS THE POOR ECONOMY BRINGING COUPLES TOGETHER? NUMBER OF UNMARRIED COHABITING COUPLES* NUMBER OF MARRIAGES DECREASING 7,137,000 8,149,000 2,205,000 2,157,000 2,077,000 2007 2008 2009 2009 2010 *Both opposite and same sex couples INCREASE IN UNMARRIED COHABITING COUPLES IN THOUSANDS 8,087 8,066 8,076 8,044 7,966 7,537 7,616 7,375 7,403 7,458 1.315 7,263 7,283 1,222 7,185 7,235 7,161 1,118 7,072 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 58.5%. -52.1%- 149.2%- 31.5% 34.8% 36.4% 9.9% - 13.1%. 14.4% PERCENT OF COUPLES WHERE BOTH WORK PERCENT OF COUPLES WHERE ONLY ONE PERSON WORKS PERCENT OF COUPLES WHERE NEITHER WORKS* BECAUSE OF ROUNDING, PERCENTAGES MAY NOT EQUAL 100 ONLY 39% OF NEWLY-COHABITING COUPLES IN 2010 HAD PARTNERS WHO WERE BOTH EMPLOYED - COMPARED WITH 50% OF COUPLES WHO WERE ALREADY LIVING TOGETHER. THE N-FACTOR MOVING IN TOGETHER CAN SAVE YOU MONEY, YES, BUT IT'S NOT A STRICTLY TWO-FOR-ONE DEAL. THERE IS, IN FACT, AN ALGORITHM THAT CAN HELP YOU DETERMINE HOW MUCH YOUR EXPENSES WILL DECREASE WHEN YOU MOVE IN WITH SOMEONE ELSE: SIMPLY CALCULATE THE SQUARE ROOT OF THE TOTAL NUMBER OF HOUSEHOLD MEMBERS, A FAMILY OF TWO CAN LIVE FOR ONLY 41% MORE THAN THE PRICE OF ONE, LIKEWISE, A FAMILY OF THREE (ONCE CHILDREN COME INTO THE PICTURE) CAN LIVE FOR 73% MORE THAN THE PRICE OF ONE. V1 = 1 V2 = 1.414 EACH PERSON SAVES 30% OR THE COUPLE SPENDS 41% MORE THAN A SINGLE PERSON V3 = 1.73 EACH PERSON SAVES 42% OR THE FAMILY OF THREE SPENDS 73% MORE THAN A SINGLE PERSSON MONEY MANAGEMENT COMPLICATIONS UNMARRIED COUPLES HAVE AN ADDED CHALLENGE WHEN IT COMES TO MANAGING THEIR FINANCES. HERE ARE SOME ISSUES TO CONSIDER IF YOU PLAN ON MOVING TOGETHER WITH YOUR SIGNIFICANT OTHER WITHOUT GETTING MARRIED: KEEP YOUR FINANCES SEPARATE YOUR FINANCES ARE YOUR OWN AND IT'S CRUCIAL THAT YOU REMAIN IN CONTROL. THE BIGGEST MISTAKES TO AVOID: ........ ... COMBINING YOUR CREDIT COMBINING YOUR BANK ACCOUNTS COMBINING INVESTMENTS A BREAKUP WOULD CAUSE UNAVOIDABLE HEADACHES AS YOU TRY TO SEPARATE EVERYTHING. NOT TO MENTION THAT A SINGLE WRONG MOVE BY YOUR SIGNIFICANT OTHER COULD EASILY DAMAGE YOUR CREDIT. DRAFT A "COHABITANT PRENUP"- THIS MIGHT SOUND A BIT OVER THE TOP, BUT THE TRUTH IS THAT WHEN IT COMES TO ORGANIZING YOUR FINANCES WITH YOUR PARTNER, YOU CAN NEVER BE TOO CAREFUL, A COHABITANT PRENUP SHOULD INCLUDE: - A LIST OF EACH PARTNER'S FINANCIAL ASSETS AND LIABILITIES - A LIST OF WEEKLY, MONTHLY OR ANNUAL COSTS AND HOW THEY ARE TO BE SPLIT. ......... RENT OR DEBT PAYMENTS HOUSEHOLD EXPENSES INSURANCE UTILITIES FOOD TRANSPORTATION PERSONAL MORTGAGE EXPENSES DOCUMENT MAJOR PURCHASES IF YOU WANT TO MAKE THINGS EASIER IN CASE OF A SPLIT, IT'S SMART TO DOCUMENT ALL MAJOR PURCHASES AND KEEP RECORDS OF THESE ITEMS, WHO PAID THEM AND HOW MUCH THEY PAID. HERE ARE SOME BIG-TICKET ITEMS TO INCLUDE IN THIS LIST: CAR TV WASHER AND DRYER FURNITURE IF YOU SPLIT THE COST - SIMPLY WRITE DOWN HOW MUCH EACH PERSON PAID. THIS WILL HELP YOU DETERMINE WHO GETS WHAT - OR WHAT IS OWED TO THE OTHER PERSON IN THE CASE OF A SEPARATION. mint.com SOURCES: CENSUS.GOV, ASSETBUILDER.COM, FORBES.COM, FAMILY.FINDLAW.COM, STATEOFTHEUSA.ORG * PERCENTAGES INCLUDE HOUSEHOLD MEMBERS WHO ARE NO LONGER IN THE LABOR FORCE. COHABITATION NATION MORE UNMARRIED COUPLES THAN EVER ARE MOVING IN TOGETHER HERE ARE SOME TIPS TO HELP THEM MANAGE THEIR FINANCES LIVING TOGETHER OUTSIDE THE LEGAL BONDS OF MARRIAGE MIGHT HAVE ONCE BEEN TABOO. TODAY, THAT'S NO LONGER THE CASE -- AND THE NUMBER OF UNMARRIED COUPLES LIVING TOGETHER IS ON THE RISE, WHILE THAT OF MARRIAGES IS DECLINING. IF DONE RIGHT, LIVING TOGETHER CAN SAVE BOTH PARTNERS SOME SERIOUS CASH: A FACTOR THAT, COUPLED WITH THE BAD ECONOMY IN THE PAST SEVERAL YEARS, HAS LIKELY ENCOURAGED COUPLES TO MOVE IN BEFORE (OR WITHOUT) TYING THE KNOT. IS THE POOR ECONOMY BRINGING COUPLES TOGETHER? NUMBER OF UNMARRIED COHABITING COUPLES* NUMBER OF MARRIAGES DECREASING 7,137,000 8,149,000 2,205,000 2,157,000 2,077,000 2007 2008 2009 2009 2010 *Both opposite and same sex couples INCREASE IN UNMARRIED COHABITING COUPLES IN THOUSANDS 8,087 8,066 8,076 8,044 7,966 7,537 7,616 7,375 7,403 7,458 1.315 7,263 7,283 1,222 7,185 7,235 7,161 1,118 7,072 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 58.5%. -52.1%- 149.2%- 31.5% 34.8% 36.4% 9.9% - 13.1%. 14.4% PERCENT OF COUPLES WHERE BOTH WORK PERCENT OF COUPLES WHERE ONLY ONE PERSON WORKS PERCENT OF COUPLES WHERE NEITHER WORKS* BECAUSE OF ROUNDING, PERCENTAGES MAY NOT EQUAL 100 ONLY 39% OF NEWLY-COHABITING COUPLES IN 2010 HAD PARTNERS WHO WERE BOTH EMPLOYED - COMPARED WITH 50% OF COUPLES WHO WERE ALREADY LIVING TOGETHER. THE N-FACTOR MOVING IN TOGETHER CAN SAVE YOU MONEY, YES, BUT IT'S NOT A STRICTLY TWO-FOR-ONE DEAL. THERE IS, IN FACT, AN ALGORITHM THAT CAN HELP YOU DETERMINE HOW MUCH YOUR EXPENSES WILL DECREASE WHEN YOU MOVE IN WITH SOMEONE ELSE: SIMPLY CALCULATE THE SQUARE ROOT OF THE TOTAL NUMBER OF HOUSEHOLD MEMBERS, A FAMILY OF TWO CAN LIVE FOR ONLY 41% MORE THAN THE PRICE OF ONE, LIKEWISE, A FAMILY OF THREE (ONCE CHILDREN COME INTO THE PICTURE) CAN LIVE FOR 73% MORE THAN THE PRICE OF ONE. V1 = 1 V2 = 1.414 EACH PERSON SAVES 30% OR THE COUPLE SPENDS 41% MORE THAN A SINGLE PERSON V3 = 1.73 EACH PERSON SAVES 42% OR THE FAMILY OF THREE SPENDS 73% MORE THAN A SINGLE PERSSON MONEY MANAGEMENT COMPLICATIONS UNMARRIED COUPLES HAVE AN ADDED CHALLENGE WHEN IT COMES TO MANAGING THEIR FINANCES. HERE ARE SOME ISSUES TO CONSIDER IF YOU PLAN ON MOVING TOGETHER WITH YOUR SIGNIFICANT OTHER WITHOUT GETTING MARRIED: KEEP YOUR FINANCES SEPARATE YOUR FINANCES ARE YOUR OWN AND IT'S CRUCIAL THAT YOU REMAIN IN CONTROL. THE BIGGEST MISTAKES TO AVOID: ........ ... COMBINING YOUR CREDIT COMBINING YOUR BANK ACCOUNTS COMBINING INVESTMENTS A BREAKUP WOULD CAUSE UNAVOIDABLE HEADACHES AS YOU TRY TO SEPARATE EVERYTHING. NOT TO MENTION THAT A SINGLE WRONG MOVE BY YOUR SIGNIFICANT OTHER COULD EASILY DAMAGE YOUR CREDIT. DRAFT A "COHABITANT PRENUP"- THIS MIGHT SOUND A BIT OVER THE TOP, BUT THE TRUTH IS THAT WHEN IT COMES TO ORGANIZING YOUR FINANCES WITH YOUR PARTNER, YOU CAN NEVER BE TOO CAREFUL, A COHABITANT PRENUP SHOULD INCLUDE: - A LIST OF EACH PARTNER'S FINANCIAL ASSETS AND LIABILITIES - A LIST OF WEEKLY, MONTHLY OR ANNUAL COSTS AND HOW THEY ARE TO BE SPLIT. ......... RENT OR DEBT PAYMENTS HOUSEHOLD EXPENSES INSURANCE UTILITIES FOOD TRANSPORTATION PERSONAL MORTGAGE EXPENSES DOCUMENT MAJOR PURCHASES IF YOU WANT TO MAKE THINGS EASIER IN CASE OF A SPLIT, IT'S SMART TO DOCUMENT ALL MAJOR PURCHASES AND KEEP RECORDS OF THESE ITEMS, WHO PAID THEM AND HOW MUCH THEY PAID. HERE ARE SOME BIG-TICKET ITEMS TO INCLUDE IN THIS LIST: CAR TV WASHER AND DRYER FURNITURE IF YOU SPLIT THE COST - SIMPLY WRITE DOWN HOW MUCH EACH PERSON PAID. THIS WILL HELP YOU DETERMINE WHO GETS WHAT - OR WHAT IS OWED TO THE OTHER PERSON IN THE CASE OF A SEPARATION. mint.com SOURCES: CENSUS.GOV, ASSETBUILDER.COM, FORBES.COM, FAMILY.FINDLAW.COM, STATEOFTHEUSA.ORG * PERCENTAGES INCLUDE HOUSEHOLD MEMBERS WHO ARE NO LONGER IN THE LABOR FORCE. COHABITATION NATION MORE UNMARRIED COUPLES THAN EVER ARE MOVING IN TOGETHER HERE ARE SOME TIPS TO HELP THEM MANAGE THEIR FINANCES LIVING TOGETHER OUTSIDE THE LEGAL BONDS OF MARRIAGE MIGHT HAVE ONCE BEEN TABOO. TODAY, THAT'S NO LONGER THE CASE -- AND THE NUMBER OF UNMARRIED COUPLES LIVING TOGETHER IS ON THE RISE, WHILE THAT OF MARRIAGES IS DECLINING. IF DONE RIGHT, LIVING TOGETHER CAN SAVE BOTH PARTNERS SOME SERIOUS CASH: A FACTOR THAT, COUPLED WITH THE BAD ECONOMY IN THE PAST SEVERAL YEARS, HAS LIKELY ENCOURAGED COUPLES TO MOVE IN BEFORE (OR WITHOUT) TYING THE KNOT. IS THE POOR ECONOMY BRINGING COUPLES TOGETHER? NUMBER OF UNMARRIED COHABITING COUPLES* NUMBER OF MARRIAGES DECREASING 7,137,000 8,149,000 2,205,000 2,157,000 2,077,000 2007 2008 2009 2009 2010 *Both opposite and same sex couples INCREASE IN UNMARRIED COHABITING COUPLES IN THOUSANDS 8,087 8,066 8,076 8,044 7,966 7,537 7,616 7,375 7,403 7,458 1.315 7,263 7,283 1,222 7,185 7,235 7,161 1,118 7,072 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 58.5%. -52.1%- 149.2%- 31.5% 34.8% 36.4% 9.9% - 13.1%. 14.4% PERCENT OF COUPLES WHERE BOTH WORK PERCENT OF COUPLES WHERE ONLY ONE PERSON WORKS PERCENT OF COUPLES WHERE NEITHER WORKS* BECAUSE OF ROUNDING, PERCENTAGES MAY NOT EQUAL 100 ONLY 39% OF NEWLY-COHABITING COUPLES IN 2010 HAD PARTNERS WHO WERE BOTH EMPLOYED - COMPARED WITH 50% OF COUPLES WHO WERE ALREADY LIVING TOGETHER. THE N-FACTOR MOVING IN TOGETHER CAN SAVE YOU MONEY, YES, BUT IT'S NOT A STRICTLY TWO-FOR-ONE DEAL. THERE IS, IN FACT, AN ALGORITHM THAT CAN HELP YOU DETERMINE HOW MUCH YOUR EXPENSES WILL DECREASE WHEN YOU MOVE IN WITH SOMEONE ELSE: SIMPLY CALCULATE THE SQUARE ROOT OF THE TOTAL NUMBER OF HOUSEHOLD MEMBERS, A FAMILY OF TWO CAN LIVE FOR ONLY 41% MORE THAN THE PRICE OF ONE, LIKEWISE, A FAMILY OF THREE (ONCE CHILDREN COME INTO THE PICTURE) CAN LIVE FOR 73% MORE THAN THE PRICE OF ONE. V1 = 1 V2 = 1.414 EACH PERSON SAVES 30% OR THE COUPLE SPENDS 41% MORE THAN A SINGLE PERSON V3 = 1.73 EACH PERSON SAVES 42% OR THE FAMILY OF THREE SPENDS 73% MORE THAN A SINGLE PERSSON MONEY MANAGEMENT COMPLICATIONS UNMARRIED COUPLES HAVE AN ADDED CHALLENGE WHEN IT COMES TO MANAGING THEIR FINANCES. HERE ARE SOME ISSUES TO CONSIDER IF YOU PLAN ON MOVING TOGETHER WITH YOUR SIGNIFICANT OTHER WITHOUT GETTING MARRIED: KEEP YOUR FINANCES SEPARATE YOUR FINANCES ARE YOUR OWN AND IT'S CRUCIAL THAT YOU REMAIN IN CONTROL. THE BIGGEST MISTAKES TO AVOID: ........ ... COMBINING YOUR CREDIT COMBINING YOUR BANK ACCOUNTS COMBINING INVESTMENTS A BREAKUP WOULD CAUSE UNAVOIDABLE HEADACHES AS YOU TRY TO SEPARATE EVERYTHING. NOT TO MENTION THAT A SINGLE WRONG MOVE BY YOUR SIGNIFICANT OTHER COULD EASILY DAMAGE YOUR CREDIT. DRAFT A "COHABITANT PRENUP"- THIS MIGHT SOUND A BIT OVER THE TOP, BUT THE TRUTH IS THAT WHEN IT COMES TO ORGANIZING YOUR FINANCES WITH YOUR PARTNER, YOU CAN NEVER BE TOO CAREFUL, A COHABITANT PRENUP SHOULD INCLUDE: - A LIST OF EACH PARTNER'S FINANCIAL ASSETS AND LIABILITIES - A LIST OF WEEKLY, MONTHLY OR ANNUAL COSTS AND HOW THEY ARE TO BE SPLIT. ......... RENT OR DEBT PAYMENTS HOUSEHOLD EXPENSES INSURANCE UTILITIES FOOD TRANSPORTATION PERSONAL MORTGAGE EXPENSES DOCUMENT MAJOR PURCHASES IF YOU WANT TO MAKE THINGS EASIER IN CASE OF A SPLIT, IT'S SMART TO DOCUMENT ALL MAJOR PURCHASES AND KEEP RECORDS OF THESE ITEMS, WHO PAID THEM AND HOW MUCH THEY PAID. HERE ARE SOME BIG-TICKET ITEMS TO INCLUDE IN THIS LIST: CAR TV WASHER AND DRYER FURNITURE IF YOU SPLIT THE COST - SIMPLY WRITE DOWN HOW MUCH EACH PERSON PAID. THIS WILL HELP YOU DETERMINE WHO GETS WHAT - OR WHAT IS OWED TO THE OTHER PERSON IN THE CASE OF A SEPARATION. mint.com SOURCES: CENSUS.GOV, ASSETBUILDER.COM, FORBES.COM, FAMILY.FINDLAW.COM, STATEOFTHEUSA.ORG * PERCENTAGES INCLUDE HOUSEHOLD MEMBERS WHO ARE NO LONGER IN THE LABOR FORCE. COHABITATION NATION MORE UNMARRIED COUPLES THAN EVER ARE MOVING IN TOGETHER HERE ARE SOME TIPS TO HELP THEM MANAGE THEIR FINANCES LIVING TOGETHER OUTSIDE THE LEGAL BONDS OF MARRIAGE MIGHT HAVE ONCE BEEN TABOO. TODAY, THAT'S NO LONGER THE CASE -- AND THE NUMBER OF UNMARRIED COUPLES LIVING TOGETHER IS ON THE RISE, WHILE THAT OF MARRIAGES IS DECLINING. IF DONE RIGHT, LIVING TOGETHER CAN SAVE BOTH PARTNERS SOME SERIOUS CASH: A FACTOR THAT, COUPLED WITH THE BAD ECONOMY IN THE PAST SEVERAL YEARS, HAS LIKELY ENCOURAGED COUPLES TO MOVE IN BEFORE (OR WITHOUT) TYING THE KNOT. IS THE POOR ECONOMY BRINGING COUPLES TOGETHER? NUMBER OF UNMARRIED COHABITING COUPLES* NUMBER OF MARRIAGES DECREASING 7,137,000 8,149,000 2,205,000 2,157,000 2,077,000 2007 2008 2009 2009 2010 *Both opposite and same sex couples INCREASE IN UNMARRIED COHABITING COUPLES IN THOUSANDS 8,087 8,066 8,076 8,044 7,966 7,537 7,616 7,375 7,403 7,458 1.315 7,263 7,283 1,222 7,185 7,235 7,161 1,118 7,072 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 58.5%. -52.1%- 149.2%- 31.5% 34.8% 36.4% 9.9% - 13.1%. 14.4% PERCENT OF COUPLES WHERE BOTH WORK PERCENT OF COUPLES WHERE ONLY ONE PERSON WORKS PERCENT OF COUPLES WHERE NEITHER WORKS* BECAUSE OF ROUNDING, PERCENTAGES MAY NOT EQUAL 100 ONLY 39% OF NEWLY-COHABITING COUPLES IN 2010 HAD PARTNERS WHO WERE BOTH EMPLOYED - COMPARED WITH 50% OF COUPLES WHO WERE ALREADY LIVING TOGETHER. THE N-FACTOR MOVING IN TOGETHER CAN SAVE YOU MONEY, YES, BUT IT'S NOT A STRICTLY TWO-FOR-ONE DEAL. THERE IS, IN FACT, AN ALGORITHM THAT CAN HELP YOU DETERMINE HOW MUCH YOUR EXPENSES WILL DECREASE WHEN YOU MOVE IN WITH SOMEONE ELSE: SIMPLY CALCULATE THE SQUARE ROOT OF THE TOTAL NUMBER OF HOUSEHOLD MEMBERS, A FAMILY OF TWO CAN LIVE FOR ONLY 41% MORE THAN THE PRICE OF ONE, LIKEWISE, A FAMILY OF THREE (ONCE CHILDREN COME INTO THE PICTURE) CAN LIVE FOR 73% MORE THAN THE PRICE OF ONE. V1 = 1 V2 = 1.414 EACH PERSON SAVES 30% OR THE COUPLE SPENDS 41% MORE THAN A SINGLE PERSON V3 = 1.73 EACH PERSON SAVES 42% OR THE FAMILY OF THREE SPENDS 73% MORE THAN A SINGLE PERSSON MONEY MANAGEMENT COMPLICATIONS UNMARRIED COUPLES HAVE AN ADDED CHALLENGE WHEN IT COMES TO MANAGING THEIR FINANCES. HERE ARE SOME ISSUES TO CONSIDER IF YOU PLAN ON MOVING TOGETHER WITH YOUR SIGNIFICANT OTHER WITHOUT GETTING MARRIED: KEEP YOUR FINANCES SEPARATE YOUR FINANCES ARE YOUR OWN AND IT'S CRUCIAL THAT YOU REMAIN IN CONTROL. THE BIGGEST MISTAKES TO AVOID: ........ ... COMBINING YOUR CREDIT COMBINING YOUR BANK ACCOUNTS COMBINING INVESTMENTS A BREAKUP WOULD CAUSE UNAVOIDABLE HEADACHES AS YOU TRY TO SEPARATE EVERYTHING. NOT TO MENTION THAT A SINGLE WRONG MOVE BY YOUR SIGNIFICANT OTHER COULD EASILY DAMAGE YOUR CREDIT. DRAFT A "COHABITANT PRENUP"- THIS MIGHT SOUND A BIT OVER THE TOP, BUT THE TRUTH IS THAT WHEN IT COMES TO ORGANIZING YOUR FINANCES WITH YOUR PARTNER, YOU CAN NEVER BE TOO CAREFUL, A COHABITANT PRENUP SHOULD INCLUDE: - A LIST OF EACH PARTNER'S FINANCIAL ASSETS AND LIABILITIES - A LIST OF WEEKLY, MONTHLY OR ANNUAL COSTS AND HOW THEY ARE TO BE SPLIT. ......... RENT OR DEBT PAYMENTS HOUSEHOLD EXPENSES INSURANCE UTILITIES FOOD TRANSPORTATION PERSONAL MORTGAGE EXPENSES DOCUMENT MAJOR PURCHASES IF YOU WANT TO MAKE THINGS EASIER IN CASE OF A SPLIT, IT'S SMART TO DOCUMENT ALL MAJOR PURCHASES AND KEEP RECORDS OF THESE ITEMS, WHO PAID THEM AND HOW MUCH THEY PAID. HERE ARE SOME BIG-TICKET ITEMS TO INCLUDE IN THIS LIST: CAR TV WASHER AND DRYER FURNITURE IF YOU SPLIT THE COST - SIMPLY WRITE DOWN HOW MUCH EACH PERSON PAID. THIS WILL HELP YOU DETERMINE WHO GETS WHAT - OR WHAT IS OWED TO THE OTHER PERSON IN THE CASE OF A SEPARATION. mint.com SOURCES: CENSUS.GOV, ASSETBUILDER.COM, FORBES.COM, FAMILY.FINDLAW.COM, STATEOFTHEUSA.ORG * PERCENTAGES INCLUDE HOUSEHOLD MEMBERS WHO ARE NO LONGER IN THE LABOR FORCE. COHABITATION NATION MORE UNMARRIED COUPLES THAN EVER ARE MOVING IN TOGETHER HERE ARE SOME TIPS TO HELP THEM MANAGE THEIR FINANCES LIVING TOGETHER OUTSIDE THE LEGAL BONDS OF MARRIAGE MIGHT HAVE ONCE BEEN TABOO. TODAY, THAT'S NO LONGER THE CASE -- AND THE NUMBER OF UNMARRIED COUPLES LIVING TOGETHER IS ON THE RISE, WHILE THAT OF MARRIAGES IS DECLINING. IF DONE RIGHT, LIVING TOGETHER CAN SAVE BOTH PARTNERS SOME SERIOUS CASH: A FACTOR THAT, COUPLED WITH THE BAD ECONOMY IN THE PAST SEVERAL YEARS, HAS LIKELY ENCOURAGED COUPLES TO MOVE IN BEFORE (OR WITHOUT) TYING THE KNOT. IS THE POOR ECONOMY BRINGING COUPLES TOGETHER? NUMBER OF UNMARRIED COHABITING COUPLES* NUMBER OF MARRIAGES DECREASING 7,137,000 8,149,000 2,205,000 2,157,000 2,077,000 2007 2008 2009 2009 2010 *Both opposite and same sex couples INCREASE IN UNMARRIED COHABITING COUPLES IN THOUSANDS 8,087 8,066 8,076 8,044 7,966 7,537 7,616 7,375 7,403 7,458 1.315 7,263 7,283 1,222 7,185 7,235 7,161 1,118 7,072 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 58.5%. -52.1%- 149.2%- 31.5% 34.8% 36.4% 9.9% - 13.1%. 14.4% PERCENT OF COUPLES WHERE BOTH WORK PERCENT OF COUPLES WHERE ONLY ONE PERSON WORKS PERCENT OF COUPLES WHERE NEITHER WORKS* BECAUSE OF ROUNDING, PERCENTAGES MAY NOT EQUAL 100 ONLY 39% OF NEWLY-COHABITING COUPLES IN 2010 HAD PARTNERS WHO WERE BOTH EMPLOYED - COMPARED WITH 50% OF COUPLES WHO WERE ALREADY LIVING TOGETHER. THE N-FACTOR MOVING IN TOGETHER CAN SAVE YOU MONEY, YES, BUT IT'S NOT A STRICTLY TWO-FOR-ONE DEAL. THERE IS, IN FACT, AN ALGORITHM THAT CAN HELP YOU DETERMINE HOW MUCH YOUR EXPENSES WILL DECREASE WHEN YOU MOVE IN WITH SOMEONE ELSE: SIMPLY CALCULATE THE SQUARE ROOT OF THE TOTAL NUMBER OF HOUSEHOLD MEMBERS, A FAMILY OF TWO CAN LIVE FOR ONLY 41% MORE THAN THE PRICE OF ONE, LIKEWISE, A FAMILY OF THREE (ONCE CHILDREN COME INTO THE PICTURE) CAN LIVE FOR 73% MORE THAN THE PRICE OF ONE. V1 = 1 V2 = 1.414 EACH PERSON SAVES 30% OR THE COUPLE SPENDS 41% MORE THAN A SINGLE PERSON V3 = 1.73 EACH PERSON SAVES 42% OR THE FAMILY OF THREE SPENDS 73% MORE THAN A SINGLE PERSSON MONEY MANAGEMENT COMPLICATIONS UNMARRIED COUPLES HAVE AN ADDED CHALLENGE WHEN IT COMES TO MANAGING THEIR FINANCES. HERE ARE SOME ISSUES TO CONSIDER IF YOU PLAN ON MOVING TOGETHER WITH YOUR SIGNIFICANT OTHER WITHOUT GETTING MARRIED: KEEP YOUR FINANCES SEPARATE YOUR FINANCES ARE YOUR OWN AND IT'S CRUCIAL THAT YOU REMAIN IN CONTROL. THE BIGGEST MISTAKES TO AVOID: ........ ... COMBINING YOUR CREDIT COMBINING YOUR BANK ACCOUNTS COMBINING INVESTMENTS A BREAKUP WOULD CAUSE UNAVOIDABLE HEADACHES AS YOU TRY TO SEPARATE EVERYTHING. NOT TO MENTION THAT A SINGLE WRONG MOVE BY YOUR SIGNIFICANT OTHER COULD EASILY DAMAGE YOUR CREDIT. DRAFT A "COHABITANT PRENUP"- THIS MIGHT SOUND A BIT OVER THE TOP, BUT THE TRUTH IS THAT WHEN IT COMES TO ORGANIZING YOUR FINANCES WITH YOUR PARTNER, YOU CAN NEVER BE TOO CAREFUL, A COHABITANT PRENUP SHOULD INCLUDE: - A LIST OF EACH PARTNER'S FINANCIAL ASSETS AND LIABILITIES - A LIST OF WEEKLY, MONTHLY OR ANNUAL COSTS AND HOW THEY ARE TO BE SPLIT. ......... RENT OR DEBT PAYMENTS HOUSEHOLD EXPENSES INSURANCE UTILITIES FOOD TRANSPORTATION PERSONAL MORTGAGE EXPENSES DOCUMENT MAJOR PURCHASES IF YOU WANT TO MAKE THINGS EASIER IN CASE OF A SPLIT, IT'S SMART TO DOCUMENT ALL MAJOR PURCHASES AND KEEP RECORDS OF THESE ITEMS, WHO PAID THEM AND HOW MUCH THEY PAID. HERE ARE SOME BIG-TICKET ITEMS TO INCLUDE IN THIS LIST: CAR TV WASHER AND DRYER FURNITURE IF YOU SPLIT THE COST - SIMPLY WRITE DOWN HOW MUCH EACH PERSON PAID. THIS WILL HELP YOU DETERMINE WHO GETS WHAT - OR WHAT IS OWED TO THE OTHER PERSON IN THE CASE OF A SEPARATION. mint.com SOURCES: CENSUS.GOV, ASSETBUILDER.COM, FORBES.COM, FAMILY.FINDLAW.COM, STATEOFTHEUSA.ORG * PERCENTAGES INCLUDE HOUSEHOLD MEMBERS WHO ARE NO LONGER IN THE LABOR FORCE. COHABITATION NATION MORE UNMARRIED COUPLES THAN EVER ARE MOVING IN TOGETHER HERE ARE SOME TIPS TO HELP THEM MANAGE THEIR FINANCES LIVING TOGETHER OUTSIDE THE LEGAL BONDS OF MARRIAGE MIGHT HAVE ONCE BEEN TABOO. TODAY, THAT'S NO LONGER THE CASE -- AND THE NUMBER OF UNMARRIED COUPLES LIVING TOGETHER IS ON THE RISE, WHILE THAT OF MARRIAGES IS DECLINING. IF DONE RIGHT, LIVING TOGETHER CAN SAVE BOTH PARTNERS SOME SERIOUS CASH: A FACTOR THAT, COUPLED WITH THE BAD ECONOMY IN THE PAST SEVERAL YEARS, HAS LIKELY ENCOURAGED COUPLES TO MOVE IN BEFORE (OR WITHOUT) TYING THE KNOT. IS THE POOR ECONOMY BRINGING COUPLES TOGETHER? NUMBER OF UNMARRIED COHABITING COUPLES* NUMBER OF MARRIAGES DECREASING 7,137,000 8,149,000 2,205,000 2,157,000 2,077,000 2007 2008 2009 2009 2010 *Both opposite and same sex couples INCREASE IN UNMARRIED COHABITING COUPLES IN THOUSANDS 8,087 8,066 8,076 8,044 7,966 7,537 7,616 7,375 7,403 7,458 1.315 7,263 7,283 1,222 7,185 7,235 7,161 1,118 7,072 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 58.5%. -52.1%- 149.2%- 31.5% 34.8% 36.4% 9.9% - 13.1%. 14.4% PERCENT OF COUPLES WHERE BOTH WORK PERCENT OF COUPLES WHERE ONLY ONE PERSON WORKS PERCENT OF COUPLES WHERE NEITHER WORKS* BECAUSE OF ROUNDING, PERCENTAGES MAY NOT EQUAL 100 ONLY 39% OF NEWLY-COHABITING COUPLES IN 2010 HAD PARTNERS WHO WERE BOTH EMPLOYED - COMPARED WITH 50% OF COUPLES WHO WERE ALREADY LIVING TOGETHER. THE N-FACTOR MOVING IN TOGETHER CAN SAVE YOU MONEY, YES, BUT IT'S NOT A STRICTLY TWO-FOR-ONE DEAL. THERE IS, IN FACT, AN ALGORITHM THAT CAN HELP YOU DETERMINE HOW MUCH YOUR EXPENSES WILL DECREASE WHEN YOU MOVE IN WITH SOMEONE ELSE: SIMPLY CALCULATE THE SQUARE ROOT OF THE TOTAL NUMBER OF HOUSEHOLD MEMBERS, A FAMILY OF TWO CAN LIVE FOR ONLY 41% MORE THAN THE PRICE OF ONE, LIKEWISE, A FAMILY OF THREE (ONCE CHILDREN COME INTO THE PICTURE) CAN LIVE FOR 73% MORE THAN THE PRICE OF ONE. V1 = 1 V2 = 1.414 EACH PERSON SAVES 30% OR THE COUPLE SPENDS 41% MORE THAN A SINGLE PERSON V3 = 1.73 EACH PERSON SAVES 42% OR THE FAMILY OF THREE SPENDS 73% MORE THAN A SINGLE PERSSON MONEY MANAGEMENT COMPLICATIONS UNMARRIED COUPLES HAVE AN ADDED CHALLENGE WHEN IT COMES TO MANAGING THEIR FINANCES. HERE ARE SOME ISSUES TO CONSIDER IF YOU PLAN ON MOVING TOGETHER WITH YOUR SIGNIFICANT OTHER WITHOUT GETTING MARRIED: KEEP YOUR FINANCES SEPARATE YOUR FINANCES ARE YOUR OWN AND IT'S CRUCIAL THAT YOU REMAIN IN CONTROL. THE BIGGEST MISTAKES TO AVOID: ........ ... COMBINING YOUR CREDIT COMBINING YOUR BANK ACCOUNTS COMBINING INVESTMENTS A BREAKUP WOULD CAUSE UNAVOIDABLE HEADACHES AS YOU TRY TO SEPARATE EVERYTHING. NOT TO MENTION THAT A SINGLE WRONG MOVE BY YOUR SIGNIFICANT OTHER COULD EASILY DAMAGE YOUR CREDIT. DRAFT A "COHABITANT PRENUP"- THIS MIGHT SOUND A BIT OVER THE TOP, BUT THE TRUTH IS THAT WHEN IT COMES TO ORGANIZING YOUR FINANCES WITH YOUR PARTNER, YOU CAN NEVER BE TOO CAREFUL, A COHABITANT PRENUP SHOULD INCLUDE: - A LIST OF EACH PARTNER'S FINANCIAL ASSETS AND LIABILITIES - A LIST OF WEEKLY, MONTHLY OR ANNUAL COSTS AND HOW THEY ARE TO BE SPLIT. ......... RENT OR DEBT PAYMENTS HOUSEHOLD EXPENSES INSURANCE UTILITIES FOOD TRANSPORTATION PERSONAL MORTGAGE EXPENSES DOCUMENT MAJOR PURCHASES IF YOU WANT TO MAKE THINGS EASIER IN CASE OF A SPLIT, IT'S SMART TO DOCUMENT ALL MAJOR PURCHASES AND KEEP RECORDS OF THESE ITEMS, WHO PAID THEM AND HOW MUCH THEY PAID. HERE ARE SOME BIG-TICKET ITEMS TO INCLUDE IN THIS LIST: CAR TV WASHER AND DRYER FURNITURE IF YOU SPLIT THE COST - SIMPLY WRITE DOWN HOW MUCH EACH PERSON PAID. THIS WILL HELP YOU DETERMINE WHO GETS WHAT - OR WHAT IS OWED TO THE OTHER PERSON IN THE CASE OF A SEPARATION. mint.com SOURCES: CENSUS.GOV, ASSETBUILDER.COM, FORBES.COM, FAMILY.FINDLAW.COM, STATEOFTHEUSA.ORG * PERCENTAGES INCLUDE HOUSEHOLD MEMBERS WHO ARE NO LONGER IN THE LABOR FORCE.