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Featured - Account Types
What type of savings account do you need?Find out about the different types of savings accounts available to suit a variety of needs.
Savings
ISAs
Residential
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - travel insurance
Travel insurance 2024Discover the best travel insurance policy for your next trip.
Home & vehicle
Health & travel
Featured - High interest current accounts
Find current accounts offering in-credit interest rates up to 5.00% AER.
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Business savings
Business products
Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
Categories
Featured guides
Popular news
Latest news - by category
Other money & finance news
Featured Star Ratings categories
Other Star Ratings categories
How much do you know about your partner's finances? Everything? What you need to? Nothing?
While money is probably the greatest taboo for a lot of couples, it's vital to discuss and know about each other's finances. In the event of the unthinkable, you could end up having to take over your partner's financial matters – even their business. At the very least, you'll feel protected by knowing the state of your partner's assets and liabilities.
Any joint debts you have, such as a mortgage, loan and even a joint bank account with an overdraft, will be treated by the lender as "jointly and severally liable".
That means that if one of you can't pay – due to death, accident, sickness or even abandonment – the other party is responsible for the whole debt.
On the other hand, it can sometimes be the case that borrowing is undertaken by the more creditworthy partner, for the benefit of the other partner. Because you are a team you don't see it as a problem – that is until things go wrong…
Debts that are held in just your partner's name would not be your responsibility should your partner not be able to repay. Even if you're a named cardholder for your partner's credit card, it is their debt, not yours. Conversely, if you take on a debt in your sole name for your partner and they then leave, you are lumbered with the repayments.
Don't be afraid to say no if you're not comfortable taking on joint borrowing with your partner. For fixed debts, such as loans and mortgages, consider life and income protection insurances to protect each other.
What's mine is yours is a great sentiment, but it's not always the way some of us feel – particularly when it comes to our hard-earned savings and investments.
However, as with debt, you should be open about what you have stashed away. This wealth could affect your family's entitlement to certain state benefits, and it could even be split between you to mitigate certain tax liabilities.
Your partner's pension is probably the most important thing to be aware of. And if you've been unable to pay in as much as you'd like into your pension (perhaps because you've taken time out of your career to bring up the children, for instance), this becomes even more important. Consider speaking to an independent financial adviser about how you can both prepare for retirement.
It's morbid, but unfortunately a very reasonable question to ask: how much life insurance does your partner have?
If they were to die, or suffer from a critical illness or injury, what would be the financial impact to your family? Life and critical illness cover can provide peace of mind and protect your family if the worst were to happen.
Similarly, is your partner's income covered if they are made redundant or suffer long-term illness or injury? Income protection or payment protection insurances can provide meaningful cover in this event and can prevent an unfortunate situation from becoming a financial catastrophe.
1. Does your partner have a pension? |
Don't know |
2. Do you know the current balance of the pension? |
Yes |
3. Do you know how many credit cards your partner has and the balances on them? |
Yes |
4. Do you know about any other debts your partner has, including catalogue accounts, overdrafts and loans? |
Yes |
5. Do you know how much your partner has in savings? |
Yes |
6. Does your partner have life insurance? |
Don't know |
7. Is your partner's life insurance adequate to protect you? |
Don't know |
8. Do you know how much joint debt you have with your partner? |
Yes |
9. Do the assets that you and your partner hold exceed the Inheritance Tax threshold? |
Don't know |
10. Do you know where your partner keeps their important financial paperwork? |
Yes |
11. Does your partner have a will? |
Don't know |
If you answered mainly with "Yes"…
Great! You know a lot about your partner's finances. This means that you are well-placed to act if your partner were to become ill or incapacitated, or even if they leave. Try to find out the answers to any questions you answered "No" or "Don't know" to and act to protect yourself where possible. Seek independent financial advice if you are in any way uncertain.
If you answered mainly with "No" or "Don't know"…
You need to find out more about your partner's finances. Lack of knowledge does not prevent a lender asking you for payment on a joint debt. Knowing your partner's finances intimately can help you plan together as a unit and work as a team. Speak to a financial adviser for more information.
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Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
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Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
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