Don't argue over money this Valentine's Day

If you're sick of smug couples and tacky romantic gestures, why not focus on the sensible side of romance this Valentine's Day? Here are my 10 top tips on money management for couples.

With February 14^th looming, we had planned to compile a list of suggestions for cash-strapped couples who want to celebrate Valentine's Day. However, we're not exactly the romantic types at BeatThatQuote so we decided to give you something more practical instead.

From mortgages to car insurance, here are 10 top tips for couples who have decided to share their finances.

1. Confess all

Sharing your finances will never work unless you're honest with one another about your spending habits.

Sitting down and having a candid conversation should help avoid any nasty surprises down the line. Imagine your anger if your partner went overdrawn on your joint account without your knowledge.

2. Share and share alike

If you live with your partner, it's good idea to set up a joint account for household bills and utilities. All you need to do is transfer an agreed amount of your salary into this account each month.

Some couples go one step further and pool their salaries into their joint account. Whether you go down this route depends on your relationship. However, it might be best to maintain separate accounts if your partner will be constantly complaining about how much you spend on life's little luxuries.

Bear in mind that if you set up a joint account, your partner's financial slip ups will affect your own credit rating.

3. Get saving

Building up a nest egg is a smart move for anyone but it probably seems more important than ever for those in a serious relationship.

With mortgages and your children's university fees to think about, you might want to put a portion of your salary into a high interest savings account each month. To learn more about saving options, check out Serena Cowdy's article.

4. Consider life insurance

Perhaps you didn't need life insurance when you were a carefree singleton. However, you will need to think about cover now you're in a long term relationship.

If you don't have life insurance, your other half could face financial disaster should something happen to you. Would your partner be able to keep up with the mortgage without your salary?

What's more, life insurance can provide financial security for any children you have together.

5. Plan for your twilight years

With the basic state pension for a married couple at little more than £150 a week, plenty of us could struggle to support ourselves when we're old and grey.

It therefore makes sense to set up a private pension to boost your income in retirement. If you join your company pension, your employer should also make contributions on your behalf - which will increase the size of your pension pot considerably.

If you already have a policy, you might want to contact your pension provider about naming your partner as a beneficiary on your policy.

However, remember to seek independent financial advice before you take any drastic action.

6. Check your car insurance

If you decide to trust your partner behind the wheel of your motor, you will need to have the right car insurance in place.

With a fully comprehensive policy, second drivers may already be covered but you should double check your policy. If you have third party, fire and theft, your partner may need to be added to your car insurance as an additional driver.

7. Tackle debt together

If you have gotten yourselves into financial trouble together, you should get yourselves out of it together.

Allowing one partner to shoulder the burden of debt management could lead to resentment in the relationship so you should work together on a strategy to get back to financial health.

However, there is one exception to this rule. If you worked up a debt before you met your partner, you can't really expect your other half to pay it off.

8. Get both names on the mortgage

If a couple is married, both partners have a legal right to remain in the marital home should the relationship end - regardless of whose name is on the tenancy or mortgage.

However, the situation is more complicated for unmarried couples. If an unmarried couple split up and one person's name isn't on the tenancy or mortgage, their partner could force them to move out. That's why you should make sure the mortgage or tenancy is in both your names.

Perhaps David Cameron was right about marriage after all!

9. Set up a cohabitation agreement

If you're like me and couldn't think of anything worse than walking down the aisle, you could consider drawing up a cohabitation agreement with your partner.

This is a legal agreement that sets out what would happen to your finances should you split up. It can cover issues such as child support, property and debt management. Both heterosexual and homosexual couples can set up an agreement.

As always, you should take independent legal advice before signing on the dotted line.

10. Make a will

Your death might not be the most romantic topic to discuss over a candlelit dinner with your loved one but it's vital that people in a serious relationship draw up a will.

If you don't, the government will decide what happens to your assets. This could lead to a financial disaster for your partner - especially if you're not married. By making a will you can set out exactly how you would like your assets to be divided when you're gone.

Remember to seek independent advice before drawing up your will.

On that cheery note, I wish you a happy Valentine's Day.

**Articles featured on BeatThatQuote.com are for information purposes only and reflect the views of individual writers. Articles are not, and should not be considered as, financial advice. BeatThatQuote.com strongly encourages our readers not to rely solely on information contained within our website, but to conduct their own research and seek independent advice about the financial products they purchase.**

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