Finances, Expenses, & Payments

Managing multi-party finances is difficult without a plan. Co-owners can get ahead of the challenges by understanding the types of cash outflows to expect and deciding how to handle expenses.

Types of Expenses

Expenses fall into two categories:

1. Recurring expenses:

Mortgage, insurance, private mortgage insurance, property taxes, HOA/condo fees, bills, home warranties, home services, etc.  Recurring expenses come due at different times and are subject to unique pricing models (= complicated).

2. Non-recurring expenses:

Upgrades, repairs, maintenance, incidentals, emergencies, etc.

Expense Handling

It's important to discuss and agree on:

➡️ How you'll split expenses

➡️ How you'll pay expenses

Splitting expenses can be based on ownership percentages, divided equally, or otherwise shared. What's important is to align expectations up front and get things in writing.

💡 Pro Tips

Most payments, like monthly mortgage payments, must come from a single account.

Many co-owners choose to open a joint checking account to handle recurring expenses. Some co-owners also decide to open a joint checking or savings account as a reserve fund to cover non-recurring payments.