Whether you’re romantically involved with a business partner, or simply co-own a business, not talking about money can result in disaster. With a little effort and planning, you can maintain a financially happy relationship.
The more conflicts partners have about money, the more likely their relationship will come to a swift end. What can partners do to prevent potential financial feuds?
1. Honesty is the best policy
Transparency is key when it comes to money in your relationship. It’s important that you lay your financial information on the table, including your income, spending habits and your assets and liabilities.
By being completely transparent with your partner, you are letting them know that you expect the same from them.
2. Divide and discuss
In many relationships, one partner earns a significantly higher salary and cover more of the regular expenses such as mortgage repayments and electricity bills.
While there is nothing wrong with this arrangement, it’s important that you openly discuss this to avoid a situation where the higher income earner is simply expected to cover all expenses and begins to feel like they are being taken for granted.
3. Create a shared financial vision and plan
Not enough people have any sort of plan in place when it comes to their own finances. If you’re committed to each other, why would you not have a clear financial plan to achieve your combined financial goals?
Sit down with a financial planner and start mapping out your financial plan, and ensure that both parties agree on the goals outlined.
4. Ignorance isn’t bliss
It is common in many relationships for one partner to be the ‘money manager’, which is perfectly acceptable. However, it’s not acceptable if the other partner simply ignores everything that’s going on.
Remember that it’s your money too, and you should have an equal say in how it’s spent, managed and invested. It is both partners’ responsibility to show an active interest in the financial wellbeing of the business and remain aware of how your money is on track to achieve your financial goals.
To ensure that a relationship lasts the distance, each partner is required to commit, invest and put in the time and energy to form a sustainable financial partnership.
Jarrad Brown is a financial adviser at Atlas Wealth Management.