Therefore, you should have a cooperative contract.
This should be remembered if you sell the house yourself
Economics is not the sexiest conversation topic, but whether you live with or want to share your boyfriend address in the future, you should add a few financial knowledge.
– There are many financial traps to go when you move together. I think the root of many arguments is lack of overview and documentation, as well as bias in the ownership of the home.
It tells consumer economist at DNB, Silje Sandmæl.
Enter cohabitant agreement first as last
Among persons between the ages of 16 and 79, about 70 per cent live in cohabitation, where 18 per cent of them are cohabitants, according to Statistics Norway.
– In a survey conducted by Ipsos MMI for DNB, it appears that only one in five couples have signed a cohabitant agreement, says Sandmæl.
She says living in a paperless relationship can create unnecessary headache. Irritations can be avoided if you provide a fair par economy from the first moment.
– Co-operation, will and life insurance is the most important thing to keep in mind in a cohabitation, emphasizes DNB’s consumer economist.
A cohabitant agreement has no formal requirements, but should be written in writing and signed by both parties. You do not need testimonials, but you may want to copy to a third party you both trust.
There are online co-worker templates, so the threshold is low to write a.
An example of a cooperative contract can be found here.
Think of violation
– Co-operation is important, first and foremost because there is an agreement on how to distribute financially between you, both while living together and if the relationship should end in violation, “says economist at Storebrand, Kristina Picard.
And according to Picard, we usually overestimate our own memory. A good contract should therefore contain a list of who owns what and what assets are commonplace.
– There is a reason that it breaks and couples who move apart do not really divorce as good friends.
With these tricks you get home root
This should be included in a cohabitant contract:
– Ownership of any common housing.
– Value development for property, and possible cost as renovation.
– Assets owned by one of the parties. For example, jewelry, heritage or bike.
– Assets you have bought together, such as housing and furniture.
– Who is responsible for the debt.
– How do you share expenses.
– Preparation of savings and insurance.
Sources: Consumer economist in Storebrand, Kristina Picard, and consumer economist at DNB, Silje Sandmæl.
Many people become irrational in such a situation and it may be difficult to fight for fair distribution of assets if you do not have papers on who owns what.
– It’s easy to shop with emotions, but you’ll probably bitterly regret it later, Picard says..
The consumer economist also recommends updating the list as you get more assets.
Share on spending
Attorney General at the Osload Attorneys, Kristoffer Dalvang, says that in a legal perspective, the fair distribution will be that you pay for your own expenses like shampoo, clothing and the amount of food you eat.
– However, it can prove difficult in practice, and then a reasonable approach is to share spending costs by half each. In this way, an economic community is created on the consumer side, he says.
Picard agrees with Dalvang, but believes the most important thing is that both parties feel they have a spacious economy, while both contribute to the community.
“Here we have the sun until it goes down”
– Some think it’s fairest that the one who earns the most also pays the most, so you’re left with about the same. Others choose a solution that both pay as much, and the highest pay will then be left with most at the end of the month, says Picard.
She recommends a shared account for shared expenses. It’s a smart solution that ensures that both contribute as much to the household.
– If your income is very different, you can agree to contribute differently, but it’s important that you are two to pay both for current consumption and for more durable purchases such as car, stereo or kitchen machine. Then these items become commonplace if you do not agree otherwise, emphasizes Storebrand’s consumer economist.
And according to Dalvang, it’s just the classic cohabitant trap, that one uses money on consumer goods while the other invests in real estate.
– The trap is revealed by any collapse of the breach, when one has bought things that the party can take on in life without having to share or pay compensation to the other, he says.
Dalvang says that as cohabitants it is the starting point that the buyer also owns it and you have no duty to share the value. It is contrary to what the rule is between spouses, which may be okay to know.
Recommend to own half
– You should know the financial situation of your partner before buying a home together. Are you unsure, can you submit tax returns for the last few years, Picard recommends.
The tax return can reveal both consumer debt and credit card debt. And although it is recommended to own 50/50, it is not always possible.
Do you have to move together for the first time? Here’s Picard’s financial advice:
– Talk about economy before moving together. Be open about income, loans and any previous payment issues.
– Write a cohabitant contract as soon as you move together for financial security in the relationship.
– Buy you into the home with about as much each, if possible.
– contribute as much to common expenses as electricity, household and bills.
– Do not have a completely common economy.
– Do not just think of a break, for what happens if one of you dies? A cohabitant does not automatically inherit the property unless it is contractual. This is extra important if there are children in the picture.
Source: Consumer Economist in Storebrand, Kristina Picard.
– You must discuss the owner’s breach in advance, because not everyone can, or want to own half the home. Both income and equity determine this, “said Picard.
And remember that if one of you owns more than the other, it’s common for this party to get the same amount as the day the home is sold.
And can not you own?
Sandmæl informs you that you should pay rent to your partner who owns the property. The total should be in line with the rental rates in the area.
– Had it cost 10. NOK 000 to rent the property, your partner should pay $ 5,000 in rental income. Other common expenses such as electricity and internet should be divided into two.
The same applies if the accommodation is to be refurbished in the form of renovation. Then the owner should pay the bill, because you as a lease do not get anything left by a break.
– In other words, be aware of what you invest in as a tenant, and buy yourself into the home if you can, Sandmæl concludes..
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