MW 'This is our second marriage': We're in our 60s. How do we split expenses if we move in together and rent one house?

By Quentin Fottrell

'We have been taking turns living in his house and my house'

"I'm also concerned about how the inheritance of a new home would work for both his children and mine." (Photo subjects are models.)

Dear Quentin,

My husband and I have been married for three years.

This is our second marriage, and we are both in our 60s. So far, we have been taking turns living in his house and my house, since they are about an hour and a half apart.

I'm getting tired of moving around and would like to stay in one place. What would be a good arrangement for handling our monthly expenses if we were to live in one house and rent out the other?

Alternatively, what problems could arise if we were to buy a new house located between the two? I'm also concerned about how the inheritance of a new home would work for both his children and mine.

The Wife

You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.

Related: My husband plans to leave his estate to his adult son, who steals his credit card to gamble online. What can I do?

Ideally, it's best to discuss these issues before you get married, but in this case it's just as wise to have the conversation before you embark on a change of residency.

Dear Wife,

You're smart and fortunate that you both have separate homes.

That gives you two big advantages: (1.) You retain your financial independence if in the unhappy and/or unlikely event that the marriage goes south. And (2.) You can decide to spend a couple of years in one house and, if for reasons related to work or family you need to change location, you can move into the other house and reverse the rental arrangement.

You ask two questions: one about splitting bills, and the other about inheritance. If you rent out your home, you pay the property taxes and home insurance as usual, and your husband pays the same expenses for his house. Otherwise, it's fair to split the other daily/monthly expenses, like groceries and utilities. Keep it simple and agree to terms ahead of time.

So far, so good. Not everything, however, is always so simple. What feels fair depends heavily on your individual circumstances: whether you have similar incomes and assets, whether one home is significantly more valuable than the other, whether one partner is paying more for retirement travel, healthcare, or major repairs. And taxes.

Because of these differences, many couples in your situation choose other options like dividing expenses proportionally based on income or contributing to a joint household account to cover costs. Simply splitting everything 50/50 may be simple in theory, and it may still work in your situation, but it isn't always equitable if there's a large disparity in income.

Tax issues

If one home is rented out, you will also have to decide who keeps the rental income and who claims the tax deductions, including depreciation, how capital gains should be handled if the property is later sold. Similarly, the purchase of a third home could also result in the potential loss of capital gains exclusions on both of your primary residences.

Purchasing a third property is a bigger step, and requires more caution. Whether or not you sell your homes, seek the advice of a family law attorney and have the kind of ownership that allows each party to leave their share to their heirs. You can do that and also put the house in a trust so the last spouse standing can continue to live there until they pass away.

There are several kinds of home ownership, and they vary by state. That said, there are two main kinds: (a.) tenants in common where the surviving spouse does not inherit the entire property if one spouse dies and (b.) joint tenants with survivorship rights which, as its name suggests, each spouse effectively owns 100% share in the house.

A qualified terminable interest property (QTIP) trust is often used in second marriages to provide financial support to a surviving spouse while ensuring that children from an earlier relationship ultimately inherit the property. The surviving spouse can benefit from the trust during their lifetime, but does not decide who receives the house after they die.

Equitable is relative

When the surviving spouse passes away, the property would pass to your respective children. For example, some couples choose to structure ownership or a trust so that each spouse's heirs ultimately receive that spouse's share of the home, but the exact percentages depend entirely on how the property/trust is titled, and state law.

Not everyone agrees with this "equitable" solution. As one member of the Moneyist Facebook Group wrote in response to your letter: "My husband and I are both in second marriages and each have two adult children. My stipulation was that the house we purchased together be put in both of our names and titled as joint tenancy with right of survivorship."

"This means that full ownership of the property would automatically pass to the surviving spouse," she added. "I explained to him that if either of us were to pass away, the surviving spouse would not want to worry about stepchildren inheriting half of the house and potentially wanting to sell it immediately, or feeling resentment that the property could not be sold."

This reader decided that their future and as yet unknown expenses took precedence over inheritance: "I also pointed out that the surviving spouse might need the equity in the house to cover medical or nursing -home costs in the future. I also explained my rationale to both of my children, so they completely understood the arrangement and have no issues."

If you don't have a prenup, a postnuptial agreement could be useful now.

Don't miss: 'It's my money': My $800K inheritance is paying for a $1.6 million house. Shouldn't I decide where my husband and I live?

Check out the Moneyist private Facebook group, where members help answer life's thorniest money issues. Post your questions, or weigh in on the latest Moneyist columns.

Previous columns by Quentin Fottrell:

2025 has been one hell of a year. Consumers should expect more 'silent pain' in 2026.

'The house has quadrupled in value': I bought a house with my brother, but he did not contribute. How do I fix this?

My sister is buying our parents' $3 million house, but wants to deduct $100K for renovations. Who's right?

By submitting your story to Dow Jones & Co., the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms.

-Quentin Fottrell

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

February 09, 2026 12:08 ET (17:08 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.