So you and your partner have decided to move in together. Fun times, but be prepared for inevitable money issues. Cohabiting can be complicated, because you're sharing a life together, but not necessarily your finances. Here are some tips for managing money when you're shacking up.


Be Aware of Your Partner's Credit History

Before sharing a place with someone, you should know what you're getting into. Financial expert Liz Pulliam Weston says you shouldn't be shy about asking for credit reports.

"'If you're sleeping with somebody on a regular basis, it's time to pull your credit reports,' she says. Even couples who keep separate bank accounts will be jointly affected by a $30,000 credit card debt or poor credit score.'"


Because you're sharing a lifestyle, the subject of that debt will probably come up at some point. It shouldn't necessarily keep you from living together. Just be aware of each other's finances and financial behavior. This will help you avoid unpleasant surprises down the road.

Establish a System for Splitting Expenses

We've already discussed ways to share money when cohabiting. Some options:

Open a joint account.Use it to pay for shared expenses each month, and then split the bill down the middle, or however you see fit. Suzanna de Baca

"Think carefully before opening a joint account though—if your partner becomes disgruntled and drains the account, you have no legal recourse."


As a solution, one person could open an account dedicated to shared expenses, but both of you could fund the account monthly.

Use an app like Splitwise

Designate each person to be charge of certain expenses. Perhaps one person is in charge of the bills; the other the rent. Set a date for the other person to pay their share. Money transfer apps like Venmo

Pool all of your money together in one place. Again, this might mean a joint account. Or, maybe you combine your separate accounts in one place—like Mint. This way, you budget for everything together. But every expense is also out in the open. "It's important that if you plan to go this route, that both of you are okay with this level of openness," Lifehacker writer Eric Ravenscraft says.


Keep Debt Separate

If your partner has a large amount of debt, you probably don't want it to affect your own credit rating. In Living Together: A Legal Guide for Unmarried Couples, authors say that "unlike marriage, living together does not make you responsible for your partner's debts."


This could change if:

You sign a joint purchase agreement

You cosign a loan, agreeing to pay your partner's debt if he or she fails to do so

Your partner's debt is charged to a shared or joint account

You register as domestic partners (in some situations)

Consider accounts at the same bank

If you're not ready for a joint account—maybe because of that debt—it's understandable. To make moving money easier, you can open accounts at the same bank. Attorney Randy Kessler tells Fox Business:

"'Your business side may tell you to keep money separate but because you're in love, you may want joint accounts, says Kessler. Instead of joint accounts, he suggests each person have accounts at the same bank to make transferring money between accounts easy."


Communicate Your Agreement

Once you decide on a system, make sure you both fully understand it. Fox Business suggests you put the agreement writing. This can be as simple as "spelling out the terms in an email" and making sure your partner responds that he or she understands and agrees to the terms.


It's not very romantic, but it is responsible.

Discuss Big Money Decisions

Leah Manderson of The Week shares the financial mistakes she made when first moving in with her partner. One of those mistakes was not discussing big money decisions:

"...I had a week-long break before starting a new job, I wanted to celebrate my new position with a trip to Costa Rica, which we would split 50/50 as we did everything else. While Mark agreed to go, he later told me the trip put him into $1,000 of debt that took him four months to pay off. I felt terrible."


It's challenging to share a life when you and your partner are in different financial places. Manderson realized "no matter how separate your bank accounts, your shared lifestyle will impact your partner." To approach the conversation better, discuss any big purchases and don't be afraid to speak up about money.

Keep Separate Emergency Funds

If your finances aren't fully combined, your emergency fund probably shouldn't be, either. Manderson writes:

"A few months after moving in together, Mark quit his job selling insurance. I tried to stay cool and support him emotionally...but I secretly panicked. I was already living paycheck-to-paycheck….was it my job to support both of us if he couldn't find work?"


She says the experience taught her the importance of having "his-and-hers emergency funds."

Draft an Agreement for Joint Homeownership

If you decide to buy a house together, tread carefully.Finance site Bankrate suggests you ask a real estate lawyer to draft a homebuying prenup, or partnership agreement. This agreement will outline "how the mortgage will be paid, who pays for what and what happens if the relationship dissolves."


One couple explains their creative solution for joint homeownership to U.S. News:

"As they consider the next step—buying property together, which they plan to rent out—they will probably form a corporation first to help keep their investments and rental incomes separate."


Certified Financial Planner Debra Neiman says, whatever the agreement, don't put the mortgage in just one person's name. It's better to wait until you're both creditworthy and apply for a mortgage together.

"'I've seen couples where one (person) isn't creditworthy and one is, with the deed in both names' but the mortgage is in one person's name, Neiman says. 'If that's the case, you have two people with an asset, but only one person is bearing the liability.'"


Merging lifestyles can be a challenge for your finances. Come up with a plan, communicate about money and prepare for setbacks. It might be a little unromantic at first, but in the long-run, it'll take some of the financial stress out of cohabiting.

Two Cents is a new blog from Lifehacker all about personal finance. Follow us on Twitter here.