Does mixing love and money work?
When you’re in a relationship, you usually think of yourselves as being on the same team – that in good times and bad, you’ll look out for one another. It’s natural you’ll want to help each other but things can get a little complicated when that involves money.
Helping a partner out financially - maybe by lending them money – can put you in financial risk. We all want to believe the best when loaning money to a partner - that is, that they’ll pay you back. Unfortunately, that’s not always the reality. What happens if the relationship ends, or you find your partner isn’t great at saving and paying back? In extreme situations, such as with financial abuse, the situation can really get out of hand.
There are some simple steps to take to lend money to a partner, while protecting yourself and your finances. If you want to know more about setting formal terms and conditions, having the agreement written down or just telling someone outside the relationship about what you’re thinking of doing, see this guide from Ruby Connection on protecting yourself when lending money to your partner.
This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness for the information to your own circumstances and, if necessary, seek appropriate professional advice. © Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.