Living together good for your wealth

People who live together or are married are better off financially than those who are single, according to new research.

In a survey of more than 2,000 UK adults commissioned by first direct bank, those who were married or living together were more than £100 better off each month than single people.

Just under two-thirds of those questioned (65 percent) said they were living together or married, a fifth (19 percent) were single and eight percent were in a relationship but living separately.

The research found that the average monthly disposable income for a couple who were married or living together was £102 more than for a single person, giving them an extra £1,224 each year.

When it came to their financial future, only 37 percent of single people felt able to add to their savings each month, compared with 45 percent of those who were living together or married.

Married couples and cohabitees were also more likely to be able to afford mortgage payments (45 percent compared with 24 percent of single people) and a mortgage deposit (19 percent against 14 percent).

Andy Forbes of first direct said: “I’m not advocating that people should move in together before they’re ready, but for those already considering sharing a roof it definitely makes financial sense."

While it may appear to make sense financially to move in together, whether on a cohabiting or more formal basis, renting or buying a property together can cause difficulties further down the line if the couple’s relationship breaks down.

Putting in place a living together agreement or pre-nuptial agreement can be a sensible step to make arrangements for children and protect each partner’s property and financial interests in the event of a split, particularly if they are bringing significant assets into the relationship.

For more information on such agreements, or any other aspect of family law, please visit our website or contact one of our fee earners.