SHACKING UP MUST-DOS FOR LOCKDOWN LOVERS

On March 24, the Government called on couples to choose either to stop seeing each other during lockdown or move in together, to avoid spreading the virus.

The Deputy Chief Medical Officer was probably on the money when she suggested it should “test the strength of your relationship”.

Among the many tests, if you decided to be under the same roof, will be what you do about money.

It’s an unusual situation, because for many this cohabitation will be temporary.

In some cases it may come to an abrupt end – while in others what may start out as an ad hoc arrangement could end up permanent.

At the same time, in some cases, one or both of you will be dealing with emergency changes in your income, which would put even the longest lasting and strongest relationships under pressure.

Sarah Coles, personal finance analyst at investment firm Hargreaves Lansdown, says it is really important to talk about money from the very start, make a few basic agreements, and be prepared to adapt as life changes.

Here are four things Sarah advises you to be aware of:

1

Joint costs

Because the situation is temporary, whoever did the moving in will still have bills from his or her own home – but it raises the question of who pays for the extra energy a couple will get through in isolation, and who covers groceries costs.

It might not seem like you’ll spend a lot more, but when you’re home 24/7 and eating every meal together, these costs will add up. It makes sense to draw up an agreement in case you’re no longer living together when bills arrive.

2

The impact on benefits

The good news is if the person who moves in has a home elsewhere, it doesn’t have any impact. If you both live alone and keep two homes, you should keep council tax reductions too.

3

Giving up one of your homes

If one of you chooses to give up your other home to cut your costs, you’d be considered to have moved in. Once this happens, you’ll need to let the authorities know your circumstances have changed.

You may pay full council tax. Your household income and savings will be considered together for means tested benefits – and if either of you is a higher earner you may no longer qualify for child benefit.

4

Thinking about the longer term

Talk about money from the start and be prepared to adapt if life changes

If you transition to living together properly, you may miss the stage deciding how to split the finances.

So you may never sit down and consider things like how to split the bills, the name on any tenancy agreement, whether the one who moved in should contribute to the mortgage – and if so whether they get a stake in the home in return.

It’s worth agreeing between you what you’ll do if you’re still living together in three months, then six months. Make a date to spend time talking about these issues, so you don’t drift into arrangements that could leave you worse off.