More and more people are attempting to improve their living standard or cope with economic decline by getting together and sharing living expenses. This activity ranges from living with a companion, a friend, or staying with or moving back home. The rationale is that sharing the costs of living is more efficient than paying for everything by yourself. In addition, for many, it is more enjoyable being around people you like or even love. Like so many of life’s decisions, the choice is personal and the consequences of faulty thinking can be devastating.

Application Insights-Should I Commingle Assets With A Companion? is a question that is very personal. Interestingly, because it deals with two people or more, the values and goals of all parties must be considered when seeking to make the right choice.  Similarities between values and goals are needed if the commingling of assets and living together activities are to succeed. For this reason, all parties involved in the action must be involved in the decision making process. They must follow the decision making guide individually and then come together and go through it collectively. Yes, this procedure is time consuming and absolutely necessary if the right choice will be made. Begin by listing the advantages and disadvantages of commingling assets and living together if that is your plan. Create the lists individually and then discuss the lists together. Are all parties expecting the same benefits and costs? Is loss of freedom, legal issues (major), and privacy included on the list along with possible financial benefits? Is insurance and use of the car(s) included? What about the items owned by each of the parties before commingling takes place and what happens to them if the people breakup? Who buys the large screen T.V and or pays the cable bill? Of course, each of these topics has viable solutions, but for many they are easier to solve when the solution is agreed to before the problem arises. With these perspectives in mind, follow the insights derived from the use of the guide.

• Defining the question is an important activity and in this case is absolutely necessary. Commingling assets might only mean buying a car together and determining who pays the bills and when one gets to use it. This single commingle is seldom the question, however, and usually it represents choosing to live together and commingle most everything. Be sure the scope of the question is well understood, and remember that for many, a single commingle often ends up with many things commingled.
    
• It is often enjoyable to carry on a discussion or debate with a person that is quite different from yourself, but usually living with or having a legal connection with polar opposites is a real problem waiting to happen. Be sure to know yourself and know the other parties very well. Be sure values and life’s goals are compatible. As commingling assets is usually an agreement that is over time, be sure long term values and goals are included in the decision making process.  Sharing living space may be fine in the short run, but if you plan on going back to school later on and you want a quiet study environment, living with “party animal” may not be a good long term decision.
   
• The identification of alternatives becomes a massive activity in the commingling case. It involves more than one party and it can include many specific situations that may have multiple options. Living with someone may seem to be an easy choice until you think about type of dwelling-multiple bedrooms or not, rental or owning, location-close to work-for whom, amount of insurance, what happens when we separate company, to name a few of the many specifics. Note commingling to be a good choice - meaning that it will work for all parties-it must include discussing these alternatives.   
   
• The discussion of the alternatives should include a listing of all of the expected benefits and expected costs of each alternative through the eyes of every involved party. The list of advantages and disadvantages will be huge and remember that each alternative may have several dimensions as they are seldom all or nothing but often several “in betweens or how much”. The decision to commingle a pet may start out with a discussion about a border collie and end up with a decision to have a goldfish that goes with you when you move out.
   
• Seeking input from others has, at least, two dimensions in this application. The input from all parties involved in the commingle is a must and everyone will benefit from expert and peer insight as well. It is probably quite easy to find people who have made a good commingle choice and those who have not. Let them share their views and note the intensity of their feelings both pro and con. In addition, bring in the experts, attorneys, real estate agents, insurance agents, to name a few. They may well open your eyes to many of the goods and bads you have failed to address. As breaking up is a difficult process and usually has a legal connection, the attorney’s input is critical.
   
• Make a decision. Remember nothing is for sure so you can change your mind if your post decision review suggests you have made a mistake. Also remember that untying commingling can be difficult and costly so be sure you have given this question the energy and time it deserves.

ADDITIONAL SOURCES

1) What's Yours Is Both Of Yours.
2) Commingling Property In Divorce.
3) How Divorce Affects Property Purchased with Commingled Funds.