Why Moving In Together After 60 Has More Financial Risks Than Marriage
Moving in together after 60 might sound like a practical next step for many couples. The kids are grown, retirement is on the horizon, and companionship feels more important than ever. However, before you box up your belongings and sign a new lease, it’s essential to examine the financial risks closely. Many assume that skipping marriage saves money or sidesteps legal hassles, but the reality is more complicated—especially for older adults. Choosing cohabitation over marriage can expose you to some unexpected financial pitfalls, and not all of them are easy to fix once you’re settled in.
This decision can affect everything from your taxes to your estate plan, and it doesn’t always protect your independence or assets the way you might hope. In fact, the financial risks of moving in together after 60 often outweigh those of marriage. Let’s break down exactly why this approach can be riskier than it seems.
1. Unclear Property Rights and Asset Ownership
One of the most significant financial risks of moving in together after 60 is the lack of legal clarity around property and assets. If you and your partner buy a home together or one of you moves into the other’s house, things can get murky. Unlike marriage, cohabitation doesn’t automatically grant you rights to each other’s property. If the relationship ends or one partner passes away, the surviving partner may have no legal claim to the home or shared possessions unless the terms are clearly outlined in writing.
This can lead to costly disputes or even eviction. Marriage creates default legal protections for spouses, but cohabiting couples need to draft detailed agreements to avoid losing what they’ve built together. It’s easy to put off these conversations, but not doing so can create real financial hardship down the line.
2. Complicated Estate Planning and Inheritance Issues
For older adults, estate planning is crucial. When you’re married, your spouse is usually the automatic beneficiary of your estate unless you specify otherwise. But if you’re living together, your partner may be left out entirely without specific legal documents in place. This is a significant financial risk of moving in together after 60, especially if you want to ensure your partner is cared for or receives certain assets.
Wills, powers of attorney, and beneficiary designations become even more important for unmarried couples. Children from previous marriages can also complicate things, potentially leading to legal battles over inheritance. Without the protections marriage offers, your partner could end up with nothing, even after years together.
3. Social Security and Pension Benefits May Be Lost
Many people are unaware that moving in together after 60 can impact their eligibility for certain government benefits. For example, Social Security spousal and survivor benefits are only available to married couples. If you’re not married, your partner won’t be able to claim these benefits based on your work record, and vice versa.
Pensions can be even trickier. Some pension plans only pay survivor benefits to legal spouses, not to cohabiting partners. That means if you pass away, your partner could lose a significant income stream they were counting on. This risk may not be obvious when you first move in together, but it can have a lasting impact on your financial security in retirement.
4. Tax Complications and Missed Deductions
Taxes are another area where married couples generally have the advantage. When you’re married, you can file jointly, which often results in lower tax bills and access to more tax deductions. Unmarried couples, even if they share a home and expenses, are required to file separately. This can mean higher overall taxes and lost opportunities for savings.
Additionally, gifting money or property to a partner when you’re not married may trigger gift taxes. Married couples can transfer unlimited assets between each other without tax consequences, but unmarried partners don’t have that luxury. These tax complications are a hidden financial risk of moving in together after 60 that can erode your nest egg over time.
5. Health Care and Long-Term Care Challenges
Healthcare decisions become increasingly important as we age. Spouses are usually recognized as next of kin, with the right to make medical decisions if you’re unable to. Cohabiting partners don’t automatically have these rights, which can lead to delays or confusion during a medical emergency.
Long-term care planning is also more complex. Medicaid rules sometimes allow married couples to transfer assets to protect them from nursing home costs, but unmarried partners don’t get the same protections. If you’re not married, your partner may be left with few options to pay for care, potentially risking both of your financial futures.
What to Consider Before Moving In Together After 60
The financial risks of moving in together after 60 are real, but they’re not insurmountable. The key is to be proactive. If you’re considering this step, have open and honest conversations about money, property, and your future wishes. Work with a financial planner or attorney who understands the unique challenges older adults face.
Don’t assume that living together is always simpler or safer than marriage. The financial risks of moving in together after 60 are often underestimated, but a little planning can help you avoid costly surprises. Take the time to protect yourself and your partner so you can truly enjoy this new chapter together.
Have you or someone you know faced unexpected financial challenges after moving in together later in life? Share your experiences or questions in the comments below!
