Before Moving In: Financial Conversations
| Topic | Questions to Discuss |
|---|
| Income | What does each person earn? |
| Debt | Any student loans, credit card debt, car loans? |
| Savings | How much does each person have saved? |
| Spending habits | Saver vs. spender? Budget preferences? |
| Financial goals | Down payment? Travel? Retirement timeline? |
| Credit score | Any credit issues? |
| Existing obligations | Child support? Family financial responsibilities? |
How to Split Expenses
Method 1: 50/50 Split
| Feature | Details |
|---|
| How it works | Everything split equally |
| Best for | Similar incomes |
| Pros | Simple, clear, no calculations |
| Cons | Unfair if incomes are very different |
Method 2: Proportional to Income
| Feature | Details |
|---|
| How it works | Each contributes same % of income |
| Best for | Different incomes |
| Example | If Partner A earns $80K and Partner B earns $50K: A pays 62%, B pays 38% |
| Pros | Feels fair, accounts for income differences |
| Cons | Slightly more complex |
Example: $3,000/month total expenses
| Partner | Income | Share | Monthly Contribution |
|---|
| Partner A | $80,000 | 62% | $1,860 |
| Partner B | $50,000 | 38% | $1,140 |
Method 3: One Pays Fixed Costs, Other Pays Variable
| Partner A | Partner B |
|---|
| Rent | Groceries |
| Insurance | Dining out |
| Internet | Household supplies |
| Utilities | Entertainment |
Method 4: Yours, Mine, and Ours
| Account | Purpose | Funding |
|---|
| Joint account | Shared expenses (rent, utilities, groceries) | Both contribute proportionally |
| Partner A’s account | Personal spending, savings, individual debts | Partner A’s remaining income |
| Partner B’s account | Personal spending, savings, individual debts | Partner B’s remaining income |
Setting Up Shared Finances
Joint Bank Account Options
| Option | Pros | Cons |
|---|
| Joint chequing | Easy bill payment | Full access to each other’s money |
| Separate accounts + Splitwise | Independence | Manual tracking |
| Joint + individual accounts | Best of both | More accounts to manage |
| Joint credit card | Shared rewards | Shared liability |
Shared Expense Budget Template
| Expense | Monthly Cost | Partner A | Partner B |
|---|
| Rent | $2,200 | $1,364 | $836 |
| Utilities | $150 | $93 | $57 |
| Internet | $80 | $50 | $30 |
| Groceries | $800 | $496 | $304 |
| Household supplies | $100 | $62 | $38 |
| Tenant insurance | $40 | $25 | $15 |
| Total | $3,370 | $2,090 (62%) | $1,280 (38%) |
Common-Law Implications by Province
When You Become Common-Law
| Purpose | Timeline |
|---|
| CRA (federal taxes) | 12 months of cohabitation |
| CPP survivor benefits | 12 months |
| Ontario (property rights) | No automatic property rights* |
| BC (family property) | 2 years (same as married) |
| Alberta (family property) | 3 years of interdependence |
| Quebec | No common-law regime (need contract) |
| Manitoba | 3 years (or 1 year with a child) |
| Saskatchewan | 2 years |
*Ontario common-law partners do NOT have equal property division rights unless they have a cohabitation agreement.
Tax Implications of Common-Law
| Change | Impact |
|---|
| Filing status | Must declare common-law on tax return |
| GST/HST credit | Combined income may reduce or eliminate credit |
| CCB | Combined family income reduces benefit |
| Spousal tax credit | Available if partner earns under ~$15,000 |
| TFSA/RRSP | Spousal RRSP becomes available |
| OAS/GIS (seniors) | Combined income calculation |
Becoming common-law can reduce government benefits if combined income pushes you above thresholds. Budget accordingly.
Cohabitation Agreement
What It Covers
| Topic | What to Include |
|---|
| Property brought into relationship | Who owns what |
| Property acquired together | How it’s divided if separating |
| Contributions to mortgage/home | How equity is split |
| Debt responsibility | Who pays what debts |
| Spousal support | Waiver or terms |
| Pet ownership | Who keeps pets |
| Dispute resolution | Mediation before litigation |
Cost
| Service | Cost |
|---|
| Online template (basic) | $100-$300 |
| Lawyer-drafted (simple) | $1,500-$3,000 |
| Lawyer-drafted (complex) | $3,000-$5,000 |
| Each person needs independent counsel | $500-$1,000 each |
A cohabitation agreement is especially important if:
- One partner owns property
- There is a significant income or asset difference
- You are buying property together
- One partner is giving up career/income to move
- You live in Ontario or Quebec (limited common-law rights)
Renting Together
Lease Considerations
| Factor | Recommendation |
|---|
| Both names on lease | Yes — protects both parties |
| Only one name on lease | Risky for the unlisted partner |
| Sub-let clause | Important if one person moves out |
| Lease-breaking costs | Understand penalties (typically 2 months rent) |
Tenant Insurance
| Option | Cost | Details |
|---|
| Joint policy | $30-$50/month | Both partners covered |
| Separate policies | $15-$30/month each | Independent coverage |
| Recommendation | Joint policy | Cheaper, covers shared belongings |
Buying Property Together (Unmarried)
Ownership Options
| Type | How Divided | Survivorship |
|---|
| Joint tenancy | Equal shares | Passes to survivor automatically |
| Tenants in common | Can be unequal (e.g., 60/40) | Passes to estate (not partner) |
Protect Yourself
| Document | Purpose |
|---|
| Cohabitation agreement | Outlines property division |
| Co-ownership agreement | Specifies each person’s equity share |
| Life insurance | Covers mortgage if partner dies |
| Will | Ensures property goes to partner |
| Power of attorney | Healthcare and financial decisions |
Money Fights to Avoid
| Common Conflict | Solution |
|---|
| Different spending habits | Agree on a shared budget, keep personal accounts |
| Unequal income | Use proportional contributions, not 50/50 |
| Hidden debt | Disclose all debts before moving in |
| Freeloading (one partner not contributing) | Written agreement on contributions |
| Gifts to family | Agree on limits for family financial support |
| Major purchases without consulting | Set a threshold (e.g., discuss anything over $200) |
Financial Checklist Before Moving Day
| Task | Done? |
|---|
| Have the money talk (income, debts, goals) | ☐ |
| Agree on expense-splitting method | ☐ |
| Set up joint account (or choose tracking method) | ☐ |
| Get tenant insurance | ☐ |
| Both names on lease (if renting) | ☐ |
| Consider cohabitation agreement | ☐ |
| Update address (CRA, banks, employer) | ☐ |
| Update emergency contacts | ☐ |
| Set a shared budget | ☐ |
| Discuss savings goals | ☐ |
| Share WiFi/streaming/subscription costs | ☐ |
| Plan for the worst: what if it doesn’t work out? | ☐ |