Moving in together is a significant milestone for couples, but it also comes with financial challenges and potential disagreements. In order to have a smooth transition, experts recommend open and proactive communication. Here are three financial tips for couples cohabitating for the first time.

1. Discuss how expenses will be paid. When moving in together, it’s important to have a conversation about how expenses will be split. Simply splitting costs evenly may not be fair, especially considering the gender pay gap. One partner may earn more than the other, so it’s important to come up with a fair arrangement that takes into account each person’s income. Making a decision and sticking to it can reduce stress and potential conflicts.

2. Be transparent about financial responsibilities. It’s essential to have open discussions about financial responsibilities and to address potential issues. Both partners should be included on the lease to ensure equal responsibility and rights. Additionally, it’s important to have a plan in case the relationship ends. Couples can prepare a cohabitation agreement that outlines who gets what in the event of a separation. Regular conversations about financial goals and tasks should also be a part of the routine.

3. Keep finances separate or consider joint accounts. Combining finances can be a big step, so it’s important to take time to evaluate if it’s the right decision for your relationship. For shared bills, couples can consider opening a joint account where both partners contribute monthly. However, some couples may choose to keep their finances completely separate and handle bills by writing separate checks or transferring money to one another. The important thing is to find a system that works for both partners and ensures financial transparency.

In conclusion, moving in together is an exciting time in a relationship, but it also brings financial challenges. By communicating openly about expenses, responsibilities, and goals, couples can navigate these challenges and build a strong foundation for their future.