Love & Money: How to Protect Your Partner Financially
- Lewis Price-Milne
- Feb 14
- 4 min read
Money isn’t the most romantic topic, but for couples building a life together, financial security is just as important as love and commitment. Whether you’re newly in a relationship or have been together for years, understanding how to protect each other financially can give you both peace of mind. From managing joint finances to considering life insurance, here’s how you can ensure your partner is financially secure, no matter what life throws your way.
Understanding Joint Finances as a Couple
Combining finances is a big step in any relationship. Some couples prefer to keep their money separate, while others merge their incomes into joint accounts. No matter your approach, it’s essential to have clear conversations about:
Income and Expenses – Knowing how much each partner earns and spends helps in setting realistic financial goals.
Debt and Financial Obligations – If one of you has significant debt, such as a mortgage, student loan, or credit card debt, it’s important to plan how this will be managed.
Savings and Investments – Whether it’s for a home, retirement, or emergencies, having a shared strategy for saving can strengthen financial security.
Legal Protections – If you’re in a de facto relationship, understanding how assets and liabilities are shared under New Zealand law is crucial. The New Zealand Ministry of Justice provides useful guidance on relationship property laws.
Here's an interesting article about wealth and income gaps in relationships from The Guardian:
Why Life Insurance Matters for Couples
Life insurance isn’t just for those with kids or big debts. It’s a smart move for any couple who shares financial responsibilities. Here’s why:
1. It Protects Your Partner from Financial Hardship
If one partner were to pass away unexpectedly, life insurance can help cover living expenses, mortgage payments, or even funeral costs. Without it, your loved one could struggle to maintain their current lifestyle.
2. It Helps Pay Off Shared Debts
Many couples take on financial commitments together, such as credit cards or car finance. Life insurance ensures that if one of you passes away, the surviving partner won’t be left shouldering the full debt alone.
3. It Provides Future Security
Even if you don’t have major financial obligations now, life insurance can provide a lump sum that helps your partner adjust financially during a difficult time.
To explore your life insurance options, check out our Personal Insurance page.
Choosing the Right Life Insurance for Your Relationship
Life insurance policies come in different forms, so it’s important to choose one that suits your situation.
1. Individual vs Joint Policies
Individual Policies – Each partner has their own policy, with separate cover amounts and beneficiaries.
Joint Policies – A joint policy is automatically inherited by the surviving partner if the other passes away. From an admin perspective, any changes to joint policies require both parties to sign off. If a relationship ends badly, this is not always straight forward.
2. How Much Cover Do You Need?
This is where an adviser can help a lot with identifying gaps. Having a discussion around current finances such as debts and earnings can be a good place to start, but you should also consider future plans and goals.
3. Consider Additional Cover Options
Some couples opt for extras like income protection insurance (which replaces lost income if you can’t work due to illness or injury) or trauma insurance (which provides a lump sum if you’re diagnosed with a serious illness).
If you’re unsure where to start, talking to an insurance adviser can help you make the right choice. You can get started here.
Legal and Practical Steps to Protect Your Partner
Beyond life insurance, there are other ways to ensure your partner is financially protected:
1. Create a Will
A will ensures that your assets are distributed according to your wishes. Without one, your estate may be divided according to New Zealand’s intestacy laws, which may not align with your intentions. Public Trust provides guidance on creating a will.
2. Set Up an Enduring Power of Attorney (EPA)
An EPA allows your partner to make financial or medical decisions on your behalf if you’re unable to do so. This is especially important for long-term couples who want legal certainty in case of illness or injury.
Love and money go hand in hand when planning for the future. By having open conversations about finances, securing life insurance, and putting legal protections in place, you can ensure that your partner is financially secure no matter what happens. It may not be the most romantic topic, but taking these steps is one of the most loving things you can do for each other.
The information in this article is general information only and is not intended as financial, medical, health, nutritional, tax or other advice. It does not take into account any individual’s personal situation or needs. You should consider obtaining professional advice from a financial adviser and/or tax specialist, or medical or health practitioner, in relation to your own circumstances and before acting on this information.
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