Loaning Cash to Family and Friends- Prevent Soft Loans from Ruining Relationships

Loaning cash to family and friends is nothing out of the ordinary. At one time or another, some of us may find ourselves considering extending a helping hand to a friend or relative who is in trouble financially. Before you do this, there are a few things to bear in mind.

What purpose will the money be used for?
If the money is to be used in a business venture, ask your friend or relative what kind of plan they have for making a profit from the business. You will have a better idea of just how much planning they have been doing. You will also know how to better help them, if the plan is sound. Ask what the money will be used for.

What is the person’s financial history?
Is the person borrowing money because they are genuinely going through hard times, or are they less careful with money than you would prefer? Someone who is very responsible in one area of life may not be as adept in another. Know where the person’s strengths and weaknesses are, so you know what to expect from them. Let the person know what your expectations are of them with respect to the loan.

Is this money that you are considering lending, money you can afford to lose?
No matter how faithfully your friend or relative promises to pay back the money, bear in mind that their expectations of the future might not bear fruit as they would want. Sometimes this is through no fault of theirs. Things can just go wrong.

If the unexpected happens, can you afford to lose this money? Will you still be able to maintain a positive relationship with this person? Don’t lend more than you can afford to lose.

When will the person pay back the loan?
Asking this is very important. For one, it reminds the relative or friend that you do expect the money to be repaid. Secondly, if the friend or relative has no immediate answer, it may be an indication that they hadn’t thought about it.

There’s a reason why some people advise against lending money to friends; it can break the friendship. However, it is hard to see a friend in need and not assist. Get the individual to sign a personal loan contract. Make sure you do what is necessary to protect yourself if you decide to help your friend.

Financial Advice for Couples Living Together- Living Together Financial Arrangements

Moving in together, or cohabiting, is a major move which affects the finances of each person in the relationship. Cohabitation statistics indicate that more couples are living together because of the economic climate, in many cases, postponing a wedding.

However, before moving in together, couples should consider the benefits of having a simple court wedding that offers both parties financial protection. Finances and marriage are a little easier to manage, since marriage offers more protection to both parties in the relationship.

Cohabitation law offers some protection to persons who move in together, but cohabitation law does not offer the financial protection to a cohabiting couple that a married couple has. Marriage and cohabitation offer different rights, and persons considering marriage and cohabitation should be aware of the rights they have in each case.

The Guide for any Woman Who’s Planning to Live Together Before Tying the Knot

 



Unmarried couples living together can take several steps to ensure that money issues are dealt with properly. Before moving in together, couples should make plans for how they will deal with money issues. The act of planning for finances and the presence of further planning for the future indicates the strength of the relationship and the individuals in it.

Making good plans helps couples to make better decisions, and enjoy the moment with less stress or worry. Without adequate preparation for the future, the next moment may be less than what it might have been, with proper planning. Combining a bank account with a cohabiting partner is not necessary. In fact, few couples do that when moving in together. Both credit cards and savings accounts should be kept separate.

Sharing these accounts makes you liable for the spending habits of your partner- good or bad.


For property that is jointly owned, it is usually assumed that each party owns an equal share of the property. If there is a breakup, each person should receive an equal share of the proceeds from the sale, provided that they also shared expenses relating to the sale in the same way.

Where there are children in the relationship, there is an obligation on parents to support their children financially. You can consider making a written contract with your partner that shows who owns what, and how you split income and expenses. Selfhelplaw.com has useful forms that you can download and use to make a written property agreement.