It can cover all your finances and the division of responsibility in your relationship. Or you can limit it to key things, like buying a house or other large expense.
It can cover income either of you earn while living together. Is it your income alone, or will you share it with your partner? If you share, will it belong equally to both of you? What about income from other sources?
Your LTC can also cover everything you own together, including:
- Property you each owned before your relationship and before you moved in together.
- Inheritances and gifts one or both partners got during the relationship.
- Property you bought during the relationship. You should further divide this property into categories, such as:
- Property one of you bought that you plan to own separately.
- Property you bought together and plan to own 50/50.
- Property you bought together and plan to own according to your contribution. Example: You buy a microwave together for $100. You contributed $75. Your partner contributed $25. Relative ownership would be 75% by you and 25% by your partner.
- Property one of you bought; the other contributed to it later. Example: Your partner buys a house with their savings or inheritance. You agree to contribute a certain amount of time, labor, or resources to improving the house. Your LTC should state your understanding about each person's interest in the house. Will your partner stay the sole owner? Will your labor build "sweat equity" in the house?
You LTC can cover things you owe, including:
- Debts or other financial obligations (such as child support, car payments, credit card payments) one of you incurred before your relationship and before you moved in together.
- Who is responsible for what part of any debts during the relationship.
Your LTC can cover if you will keep separate bank accounts or put all your money into one joint account.
Your LTC should say if you plan to hold credit card accounts individually or jointly, and which of you is responsible for which expenses or charges. Each partner to a joint credit card account is personally responsible for all charges made on the card. Example: Your partner runs up a bill of $1,000 without telling you. The credit card company can hold you responsible for it anyway.
Your TC can cover general expenses, including:
- Who will pay which living expenses (utilities, groceries, homeowners or rental insurance)
- Who will pay what personal expenses (medical and dental, car insurance, and clothing)
- If you rent where you live, your LTC can cover this. Will both names appear on the lease? How will you divide responsibility for rent and repairs? Who will keep the rental if you break up?