From the research conducted by family experts in Singapore, they found out that the number of couples who were not married but lived together rose by 90 % from 1990 up to 2007. Currently, this number continues to increase as many around 12 % of the couples being unmarried. But the most interesting thing is one how the diverse the population which is cohabitating is. Even if the population is very large, they tend to have some common problem in that they do not concentrate on planning for any future financial expense the way married couples do.
It is no doubt that married couples face a challenge in managing their income. Sometimes they may resort to seeking non banking financial institutions such as Credit Hub Capital.
You are be asking yourself what kind of finance issues you could face? Do not worry as I have highlighted the common personal finance problems that unmarried couples in Singapore are facing today.
Separate or joint asset and account issues.
Many financial experts in Singapore usually advice unmarried couples should keep their assets separate especially in the early stage after they have decided to live together. This will not only assist in reducing conflicts for both you but will also assist in debt management such as credit cards and loans.
In the end, you have equal rights to the assets in the account if your names indicated on the account and this can be bad or good thing depending on the situation that you may be facing. You might try to face mingle with the assets and even open a joint account for your expenses such as groceries, utilities, gas, and rent. It is good that before committing your relationship, you keep your assets in separate accounts.
Some guidelines can assist you in managing joint financial expenses, on the other hand, keeping your assets and money separate. Some of them are:
You can maintain a separate account to keep the majority of income that you earn, but you will also open a joint account where you will both be contributing. Your contribution will depend on your agreement regarding paying these expenses. You can maintain a separate account, move them to the same bank but have free online banking features that make easy to transfer the money to the individual account.
You decide to own some properties jointly. Do not try to buy a major asset that will bear your only such as a car or house. If you decide that the assets purely belong to both of you, then it should bear both of your names.
If you decide to buy a house jointly, you will have to look at what step you will take whether it is tenants in common or joint ownership with rights of survivorship. You will find that under joint ownership you will be able to inherit all the property when one of you dies. This makes it easy to transfer the property, but if you do not keep proper records, you can face very serious tax implications. On the other hand, under the tenants in common, you will own half of the property. In this case, you will have to especially who inherit the property in case you die.
So many unmarried couples In Singapore may tend to too depend in almost they are doing on their partner such that they will face a huge financial crisis when they separate with another partner. In case you and your partner would have made a decision that could greatly affect your financial situation, it is good that you have an enforceable written document. This agreement will outline all the details regarding financial support in case your relationship ends.
In case your relationship, income, and even assets grow you can hire a family lawyer to assist in reaching an agreement that will reveal what will happen to the assets and any property when your relationships end.
Income tax issues
From the information revealed by income tax experts, the unmarried couples can do well on many issues concerning tax payment compared to married couples. However unmarried couples do suffer from marriage tax penalty while the married ones do receive tax benefits known as marriage tax bonus. It is estimated that married couples do require to pay a penalty of up to 12 % of their income if they separate regardless of whether if they have children or not.
If you are unmarried, it is possible that you file your income tax separately, ensure you take advantage of the deductions so that you minimize your tax burden. To do this, you can do the following.
You can pool your income to finance the household expenses. Which is usually referred as non-taxable sharing of resources. You can look at your financial institution so that they can guide you on how to take advantage of this.
Many unmarried couples will have to face a major problem in financing any health-related issues. Personal finance experts in Singapore have revealed that medical planning inessential to any unmarried couples. In the agreement, you will have to state on how you will finance the medical bill if the other partner gets sick or becomes disabled. For any unmarried couples who are living together by have to be prepared for this possibilities. In doing this, they will have to visit a good lawyer in Singapore, and they should not forget to sign the following documents.
A healthy care proxy document that will allow someone who is not your relative to make any medical decisions when you become incapacitated. A durable power of lawyer document that will allow your partner make any financial decision in case you are not able to make the right decision.
If you research, you will be able to find out that there are so many things you and your partner can consider such beneficiaries on retirement plans, life insurance, and child custody. For the best advice for any unmarried couple in Singapore just follow the above guidelines. So many couples have followed the above guidelines, and they have lived to enjoy the rest of their life, why not you?