With the cost of living rising daily and salaries doing a very poor job of keeping up, it's understandable that many, many people are feeling the 'squeeze.' And with the devaluation of the dollar, the money that we do have just isn't going as far as it used to. Financial pressures (and others that life commonly brings) can take a toll on everyone; not just individuals, but couples and families as well. Added to the mix, the occurrence of relationship debt is being seen more frequently than ever before. What is relationship debt? Simply put, it's what happens when a life partner (for instance, a husband or wife) becomes liable for the debts incurred by his or her ex-partner.

How can this happen? There could be any number of ways, but let's take a look at a very basic example. Assume that you've been living with your partner for a fairly lengthy period of time, and he or she asks you to co-sign for a mortgage or other loan. No big deal, right? After all, you're both 'in this thing together.' But, what happens if the marriage or relationship falls apart? Since your name also appears on the loan document, you could be held solely responsible for repaying the debt.

Here's another scenario: let's suppose that you have a credit card account, and you request an additional card for your spouse or partner. While you might hope that he or she would pay for whatever expenses they personally incurred, it's nevertheless your credit card and you are the one who's ultimately responsible for the charges made with it.

Needless to say, relationship debt (and finances as a whole, for that matter) can be a very touchy subject – whether or not the relationship is still intact. However, for caution's sake, here are a few tips that you might consider to minimize the risk of facing it in the future:

• If you both have assets, set up separate accounts.
• Apply for individual credit cards.
• Do not co-sign a loan. If you've signed for or had your name affixed to any type of loan or debt incurred by your partner, you are the "guarantor." Under law, any debt must be collected primarily from the borrower (your partner); but if those efforts prove to be fruitless, you'll ultimately be responsible for repaying it. If your partner asks you to sign anything, consult an attorney first so that you're fully aware of what you'll be getting into.
• Write out a formal agreement with your partner that specifically states what each of you is entitled to should you separate.
• Learn as much as you can about finances in general and the legalities and responsibilities pertinent to living with a partner in your state of residence (different venues have differing laws).
• Talk with an experienced financial planner. You and your partner will doubtless find the advice very useful, especially if either or both of you have a substantial amount of assets.

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