Tips for Managing Joint Bank Accounts During Divorce Proceedings

For many couples preparing to divorce, managing the joint account in the final leg of a marriage can be thorny. How difficult it is depends on the state of the relationship when the couple reaches the divorce proceedings stage. You have a few options for managing a joint account while you wait for your assets to be divided.

Joint Bank Accounts Are Marital Property

The court considers a joint bank account marital property, right alongside other jointly owned property, such as the family home and retirement accounts. Even separately owned assets may qualify as marital property. A couple must understand this, as well as how the court will divide the property.

In Michigan, the court divides marital assets equally. Generally, it’s 50% to each spouse. In some cases, such as when one spouse is found at fault, the court may award more to one than the other. Either way, measures should be taken to appropriately manage the account to avoid issues with legal ramifications.

Tips for Managing a Joint Bank Account

Below are several tips for managing a joint banking account during divorce proceedings.

Freeze the Bank Account

A spouse unexpectedly confronted with divorce may be hurt or enraged and may retaliate by draining or over-drafting the bank account.

If the spouse seeking the divorce observes the other spouse acting irrationally and suspects they may recklessly spend money, they can call the bank and request the account be frozen before any damage is done.

They may also ask the court to freeze the couple’s financial assets through a temporary restraining order.

Even if some draining has already occurred, the other spouse should request a freeze to halt further withdrawals. If the divorce was filed before the money was removed from the account, the spouse who withdrew the funds will have to repay the amount that doesn’t belong to them based on the court’s division of property.

Close the Account

When a divorcing pair is amicable, they can close the account together. Depending on the bank, the couple can close the account at a local branch, over the phone, or online.

A number of banks allow one account holder to close a joint account. However, with a divorce pending, it’s wise to seek the advice of an attorney before doing so.

Continue to Share the Account

Couples with children who are divorcing amicably may decide to continue sharing the bank account for child-related expenses not covered by child support.

However, the couple needs to agree on the terms, such as the expenses the account will cover and the percentage each parent will contribute.

When relations between the spouses are hostile, hiring an attorney may be the best first step. Bank account draining and overdrafts harm both parties, and putting an end to it may require involving the court.

Are You and Your Spouse Divorcing?

Are you going through a divorce? Contact Gucciardo Family Law for a free consultation with an experienced Michigan family law lawyer.