Financial challenges for live-in couples: How to resolve the money issues and secure your finances
While societal acceptance of such relationships has increased, at least in metros and tier 1 cities, they continue to be beset with several legal and financial issues. Though living together is not considered illegal or a criminal offence, there are no specific laws governing such relationships and the couples do not enjoy the same legal and financial rights as married couples. Over the years, however, several Supreme Court rulings have accorded legal protection to the relationship based on a loose definition of cohabitation. “Live-in relationships have legal validity, though India does not have a dedicated statute for these and it is only governed to a limited extent by judgments of the Supreme Court,” says Rohan Mahajan, Founder and CEO of LawRato.com.
Such couples face several challenges because most financial and government institutions recognise only married couples and blood relatives for legal transactions. Inheritance rights, joint tax benefits and health insurance coverage can be tricky, while long-term financial planning for goals like retirement and buying property can be complicated. Overcoming these requires careful financial planning and legal documentation to ensure stability and security in the long run.
Joint financial products
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Married couples often go for joint financial products to maximise tax benefits or for premium discounts. Live-in couples don’t have this luxury.
INSURANCE: Buying family floater plans in health insurance is not possible. “We feel it would have been easier to have access to shared financial products, especially insurance. It’s a major chore to keep our separate insurances, but we have made peace with it now,” says Udita.
