Red flags in Your Relationship

Surprisingly, four out of ten Australians are unaware of their partners wealth, according to the finance comparison site, Finder. That is a terrible statistic even for those who think they are otherwise happy in their relationship.

Every person who is in a long-term relationship, owes it to themselves to fully understanding their partner's financial situation. How much they earn, how much they own and what risks they might face regarding their finances.

As women increasingly become the dominant income earner in relationships, this is just as important for men as it is for women and it is no longer good enough to just leave it to the other person because "they are so good at it".

So here are some basic tips everyone in a relationship should know about their partner's financial situation and if your immediate response is, I can't possible ask that, then you really do need to question your relationship.

Don't just leave it to your partner to manage your finances and assume everything will be okay. In my experience, people only do this when they fear something is wrong and they just don't want to face it.

Set aside time with your partner, maybe once a year or more frequently, to sit down and discuss your joint financial situation, preferably in the cool light of day over a non-alcoholic drink.

Make this a regular thing so there is no big deal to it.

You should know just how much your partner is earning and just what they own and what they might owe, including any mortgages or credit card debts. This is particularly important if you share responsibility for any debts.

Increasingly superannuation is becoming a significant financial asset in most relationships and so you should know and be kept up-to-date as to how much your partner has in superannuation.

Be aware even the strongest relationship can end with a blink of an eye these days. So while you might think you are perfectly happy in the relationship, your partner might have very different ideas.

It is very easy for one partner to effectively hide assets in a range of things from watches to jewellery to overseas bank accounts just as it is relatively easy for your signature to appear on loan documents without your knowledge.

If you do have any concerns about your financial situation, then quietly and without any fuss think about how you would survive if the relationship were to suddenly end.

This doesn't have to be a big deal. It might be as simple as contributing more to your super account or ensuring your name appears on the title of any property you believe you jointly own.

If you are in a stronger financial position than your partner and you find yourself for whatever reason extending them a loan, make sure you have that loan fully documented and signed for. Otherwise look upon it as a gift as that is what it is.

While you may not want to go to the expense of having that loan document registered and paying stamp duty on it, it is only in this way that you a legal right to claiming that money back.