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Moving in with a partner for the first time is an exciting milestone. In addition to spending more time together, you’ll also share much more together now. That includes meals, living spaces, and most importantly, expenses.
Splitting expenses is key to an equitable and financially stable living situation. Figuring out the best way to split your expenses can be a tough conversation, but it’s a crucial step for a successful partnership.
Luckily, Moving Help® has put together this guide for some of the most popular approaches for splitting bills. We’ve also laid out some general tips, so your new living arrangement has minimal financial hiccups.
Do I Have to Split Bills With My Partner?
No, it’s not necessary to split your expenses. If you or your partner are comfortable handling all the finances for both, that’s a valid decision.
In today’s economic climate, however, with high costs of living, rising rent prices, and mortgage rates commonly above 6 percent, splitting bills is more economically feasible for many couples. It can even help you two reach your financial goals faster.
3 Ways to Split Expenses With Your Partner
You can split the bills many ways in a partnership. Some are more common than others. It’s most important to do what works for you and your partner.
Here are three common methods for how to split expenses with your partner.
1. The 50/50 Method
This method is arguably the simplest.
Essentially, you and your partner split everything 50/50. For example, if your shared monthly expenses are $3,000, you each contribute $1,500.
That might sound great on paper, but if one of you makes a significant amount more than the other, it can get messy. For example:
- Partner A makes $4,000 a month
- Partner B makes $1,800 a month
In a 50/50 split, Partner B is spending 83 percent of their monthly income on bills, while Partner A is only spending 38 percent of theirs. This can lead to a “lifestyle gap” where one partner is struggling while the other has plenty of disposable income.
2. Splitting Bills Based on Income
This method requires a little more math, but many couples prefer it because it feels more equitable. You contribute based on the percentage of the total household income you provide.
How to calculate it: If Partner A earns $4,000 and Partner B earns $1,800, your total household income is $5,800.
- Partner A earns 69 percent of the total and pays $2,070 of the $3,000 bill.
- Partner B earns 31 percent of the total and pays $930.
This ensures both partners have a similar percentage of “fun money” left over at the end of the month.
3. The “Free-For-All” Method
Sometimes called the “assigned bill” method, this method works well for couples who have irregular income or want to keep the finances somewhat separate.
Basically, in this method, you divide up specific bills rather than splitting each one.
For example:
- Partner A covers the internet, gas, cable, groceries, car insurance, and electricity
- Partner B covers the mortgage/rent, car payment, and water
This set up has some perks — you only have to keep track of the bills you’re responsible for, and don’t have to worry about splitting anything. You also can keep your finances relatively private rather than having them intertwined.
On the down side, it’s hard to keep finances fair using this approach. In the example above, Partner B will clearly pay more each month, even though Partner A covers more of the bills. If an equitable split is important to you, this might not work.
General Tips for Splitting Bills
Consider a Joint Account
An easy way to pay shared expenses is to set up a joint bank account. You both contribute to the account — either an income-based split or 50/50 — and use it to pay your shared expenses while keeping your other finances separate.
Have an Emergency Fund to Cover Your Partner (And Vice Versa)
While we always hope for the best, it’s wise to be prepared for the unexpected. Aim to build an emergency fund that could cover the full household expenses for a month or two. If one partner faces a job loss or a medical emergency, this protects both partners.
Communicate Openly
Money can be a sensitive topic, even in the strongest relationships. If a payment is late or a budget is exceeded, try to approach the conversation with curiosity rather than accusation. Stick to your agreed-upon plan but allow for “grace periods” and open dialogue. Do your best to hold each other accountable in a respectful manner.
Avoid Stress on Move-In Day
The best way to start your new life together is on a positive, stress-free note. When you hire Moving Help from our Marketplace, you can skip the heavy lifting and focus on turning your new house into a home.
With our transparent, upfront pricing, you’ll know exactly how much your move costs before it even starts, making splitting the bill that much easier.
