Brits keeping their financial distance when they move in together

Financial commitment is not high on the agenda for many British couples who now prefer to keep their finances separate rather than open a joint bank account, new research shows.

Some 58% of couples keep their money separate when moving in together, according to the survey from online bank first direct.

A further 21% only set up a joint account for bills, keeping their existing separate current account for their own spending. This means that just one in five couples, 20%, decided to unify their money and control all their finances from a joint account.

This compares with research carried out by first direct on 2006 which found that just 26% of people thought it was important for couples to keep their finances separate within a relationship suggesting that the trend of couples keeping their financial distance has grown over the last five years.

This latest round of research also found that many couples did not fully commit in their property arrangements when moving in together. Just 30% of couples rented with both names on the lease, and only 18% bought together with both names on the mortgage, leaving the majority, 52%, who lived in a property rented or bought with only one partner's name registered.

Additionally, less than a third, 28%, of couples paid the deposit on their first property jointly through savings and 14% paid it together but with one partner paying more than the other. And 36% say that one partner put down the whole deposit. Despite this, 97% of people did not sign a prenuptial agreement.

‘Taking the step of buying a home together is an exciting one, but the head needs to keep the heart in check. This is particularly wise where one party is contributing more than the other to the initial deposit or ongoing household finances,’ said Richard Tolchard, senior mortgage product manager at first direct.

‘While homeowners are naturally confident things will work out and are keen to minimise costs when buying a home, getting independent legal advice on what would happen in the worst case scenario is always sensible if you're not married or in a civil partnership,’ he added.

According to Richard Brown, senior savings product manager at first direct, there is less pressure for moving in to be a lifelong commitment so couples are remaining more independent with their finances when they do.
 
‘But while couples may feel that there is no longer any need to pay for everything jointly and that a measure of financial independence from each other is healthy, it would still benefit them to pool their savings as the larger their pot, the higher the interest rates on offer,’ he added.