Family, Criminal & Children's Court Attorneys Since 1991

Closing a shared bank account during divorce 

On Behalf of | Oct 1, 2024 | Divorce |

Some married couples use individual bank accounts, keeping their money separate and paying their own bills. But many couples use shared or joint accounts. These may be accounts where automatic withdrawals are made for mortgage payments or credit card payments. It may also be where the couple gets their paychecks deposited from work. 

As such, if you’re getting a divorce, you need to close down this shared bank account. There are a few things you need to know about the process.

You may need to do it with your spouse

First and foremost, you and your spouse may have to do this together. Check with your financial institution to see what rules and regulations they have. Some institutions will allow one account holder to close the entire account, but others will require both account holders to be there in person. It may depend if you are both account owners or if one of you is an authorized user on a shared account.

Avoiding allegations of financial fraud

Even if you can close the account down by yourself, make sure you are transparent about the process. Remember that the money in that account counts as a marital asset, so it needs to go through property division. If you withdraw the money, move it to your own account and fail to disclose it to the court, that’s a type of financial fraud. So it is wise to close a shared account that you won’t need moving forward, but make sure to do things in the proper order so you don’t further complicate your divorce.

Of course, closing a bank account is just one step you’ll need to take during a divorce. Be sure you know what legal options you have.

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