we will move in together in the coming months their tc: 220k my tc: 85k edit: this is a romantic relationship #housing #money #rentsplit #tc
If you split the rent your partner can claim you are effectively married and sue you when you break up.
Partner pays more and you make the difference via other means (eg. do more chores at home)
If you plan to marry them it doesn’t who pays what in the end.
When I moved in with my girl, she was a student and didn’t make much money. We split it 30-70, where the ratio was less important and more important was keeping her costs to the same or less to what she was paying before. Because its just rental, it doesn’t matter. Eventually when we bought a house together, we made a contract to have ownerships based on downpayment amount. It was a 80-20 ish split. And now we’re married so everything is 50-50.
Pro-rata
Rata nivel pro 😂
85k at goog? What role is that? Also depends on genders of the people in relationship
One way is to split proportionally based on income. In other words, your total household comp is 305, your contribution is 85, so you pay 85/305 = 28%. That way your salary isn’t a constraint on their desired lifestyle, and you don’t feel pressured to spend beyond your means. There’s some nuance in whether you count equity in comp or just base pay though, since equity is variable based on the market. My partner and I split based on base salary only, not counting equity. It’s not a perfect system, but it works for us.
I've seen under this system that the lower earner will have less of an incentive to earn more. What are your thoughts/experiences with that?
I don’t see that as a problem. I don’t expect that my partner has to make as much as me (I’ve always been the higher earner).
Aim for 50/50 with a price you both are comfortable with. If your partner wants to get something nicer they should be ok with covering the difference if it’s beyond the others means.
What to do if partner has lesser TC but wants a nicer place?
50/50 for that scenario. Only choose a place you BOTH agree on.