MARTIN Lewis’ MoneySavingExpert is urging couples to avoid a simple mistake that could see them losing cash.
And it’s particularly important if you’re living together but not married, according to MSE.
Martin Lewis’ MoneySavingExpert is urging couples to avoid a simple mistakeCredit: PA
Tying the knot is falling down people’s priority list as they focus on other life milestones such as buying a house and starting a family instead.
And while many people choose not to marry – they might not realise they’re missing out on some financial perks as a result.
In the latest MSE newsletter, the team say that that those who are not married, or in a civil partnership, have no status under inheritance law.
This means that a partner may be at risk of losing an asset – such as a house – they thought they would inherit if a loved one dies.
It doesn’t mean everyone should make a quick dash down the aisle, but it makes having a conversation about your shared finances even more important.
Martin Lewis’ say couples should consider making a will, or signing a cohabitation contract.
If you own a property with your partner, but you aren’t married, you could consider a cohabitation agreement.
Cohabiting means you are in a relationship and live together, but haven’t tied the knot.
This covers what share of the property each person owns – which is particularly important if one person has contributed more to the deposit.
It also covers what happens if a dispute occurs, any maintenance costs and who is financially responsible for what.
It means you both are clear on what your rights are – which will help avoid nasty arguments in a worst case scenario.
A marriage creates a legally binding financial bond between a couple.
That means if one of you dies, your assets are automatically passed to your spouse – that includes your savings, pension and share of any property.
But cohabiting couples do not have the same rights – so if you want your assets to pass to your other half, you’ll need to make a will.
A lot of people put off writing a will as it feels a bit morbid, but it’s the only way to ensure your assets are distributed as you would like after you die.
Otherwise probate rules kick in, and these will determine who inherits your assets, which could leave your partner seriously in the lurch.
Make a Will Month takes place twice a year, and sees many solicitor firms write wills for clients either for free, at a reduced rate or in exchange for a charitable donation.
It’s usually during October and March, and you can find participating firms and keep updated on the Free Wills Month website.
Here’s why you need to think about saving for your retirement.
Here’s 22 tips to help you save THOUSANDS of pounds.
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