Financial Safeguards Couples Should Consider Early On

Brian Court, a certified financial planner and adviser at JustAnswer, says protecting money in a partnership is about preparation, not distrust. He recommends that each partner keep a personal account even when sharing a joint checking or savings account, maintain enough liquid savings to cover several months of basic expenses, and continue building individual retirement assets. Court stresses that “Financial independence isn’t a sign that you don’t trust your partner.”

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The Centers for Disease Control and Prevention (CDC) records roughly 672,000 legal divorces annually in the United States, underscoring how common relationship dissolution can be. For cohabiting couples without the legal framework of marriage, the financial fallout can be equally severe, especially when debts, credit, or property are intertwined.

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• Maintain Separate Accounts – Keep an individual account for personal expenses and emergencies.

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• Discuss Finances Up Front – Review income, debt, credit history, and spending habits before moving in together.

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• Avoid Joint Debt Without Full Understanding – Cosigning loans or opening joint credit lines can make both parties liable regardless of who benefits. Court notes that a cosigned car loan leaves both names responsible for payments if the relationship ends.

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• Put Major Agreements in Writing – For significant purchases or unequal contributions, use a cohabitation, property, prenuptial, or postnuptial agreement drafted by an attorney.

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• Protect Credit and Continue Personal Savings – Keep personal credit active, contribute to individual retirement accounts, and monitor credit reports regularly.

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• “Even if you decide to open a joint checking or savings account, each person should still maintain an account in their own name,” — Brian Court

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• “It may feel uncomfortable or unromantic, but these agreements can prevent much larger disagreements later,” — Brian Court

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• “Financial independence isn't a sign that you don't trust your partner,” — Brian Court

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