Valentine’s Day is approaching and it can be easy to get caught up in the celebration and spend money on expensive gifts, meals out, flowers, and even jewellery.
But one of the most romantic things you can do is free and it could make your relationship stronger.
It may sound boring, but financial advice platform Unbiased said all couples should examine their joint finances and make some long-term plans.
Money is responsible for many arguments between couples and is often cited as a reason for a relationship breaking down and for a divorce, added Unbiased.
It said many couples were also unaware of some of the issues around marriage and cohabitation, and cohabiting couples do not have the same legal rights as married couples.
Karen Barrett, chief executive and founder of Unbiased, said: “It can be all too easy to focus on enjoying the present and not consider what could happen in the future, whether you’re single, cohabiting or married.
“For cohabiting couples, there’s a risk that you leave your loved ones with nothing if you pass away due to having less legal rights than their married counterparts.
“This is why it’s important to consider a will and estate planning, especially if you’re cohabiting, to ensure your assets go to your loved ones.”
Unbiased has given couples tips that they can use to strengthen their relationship this Valentine’s Day
One: Have an emergency fund
Regardless of your relationship status, having an emergency fund worth three to six months’ worth of expenses is a good idea so you can handle the unexpected, such as car repairs or redundancy.
A joint bank account may be useful if you’re cohabiting or married. It is easier to split bills with an overview of your finances, but you’re financially linked, so credit checks will look at both applicants.
Two: Make a will
While it’s uncomfortable to think about your loved one passing away, it’s vital to consider what would happen, especially if you’re one of the estimated 3.6 million cohabiting couples in the UK.
For example, if you’re cohabiting with your partner and they pass away, you won’t inherit anything – unless you have a will or own any assets.
The surviving partner could go to court to claim from the estate if their partner dies and there’s not enough for them to live on, but this is stressful and may be unsuccessful.
If you pass away without a will, you’re known as ‘intestate,’ so your estate will be distributed under specific rules, with married and civil partners and some relatives inheriting assets – or the estate is passed to the Crown if there are no living relatives.
So, having a will in place is a good idea if you want to choose who inherits your assets.
Three: Prepare for the worst
Alongside a will, it’s also worth thinking about insurance, with many policies available, such as life, critical illness and income protection, which can offer peace of mind for your loved ones.
Some insurance policies may pay out if you pass away during the policy term, while others may cover an outstanding mortgage or offer financial support if you cannot work due to a serious illness.
