In some marriages, there may be a good reason for a spouse to worry about losing access to money during a divorce because the other side has or will take control of the couple’s shared finances. If you are anticipating divorce and have such concerns, you may be tempted to empty your bank account before filing for divorce to ensure you have funds to support yourself. While you may have the right to the money to a certain extent, there are strict rules about if, how, and when to take that step.
What Are Your Rights to Money in a Joint Bank Account Before a Divorce?
With a joint account, both parties have equal rights to the funds. Thus, you could empty the account without the other one’s permission. However, anything you do that is out of the ordinary, such as depleting a bank account, will be scrutinized by the court particularly if it’s done immediately before filing for divorce. The court will ask you to account for what you did with the money to determine whether it is an appropriate use.
When Is It Acceptable to Withdraw Money From a Joint Bank Account Before Divorce?
If you are concerned that your spouse will cut off your access to money once the divorce action is filed, thus making it difficult for you to pay expenses for your daily needs, you may withdraw some funds, and you must keep records of how you spent those funds. For example, using them to pay for housing, food, expenses related to your children, and other essentials is permissible. You may also use the money to pay for an attorney to represent you in the divorce.
The rationale for this rule is that it can take months to get a court date asking a judge to award temporary support. If your spouse is controlling, litigious, or difficult, you may not have the funds to support yourself in the interim, so the court will likely understand that you withdrew money for legitimate expenses.
Can You Close a Joint Account Before Divorce?
There may be valid reasons to close a joint account if you fear your spouse may create liability. For instance, you withdraw half the money from the account to meet your daily needs but leave the account open. Your spouse takes a line of credit or overdraws on the account. Your name is still on the account, so you will be liable for paying that debt. In such a case, it may be best to close the account. However, as with the other exception, you must document how you spent the money withdrawn from the account and use the funds for legitimate purposes.
Can You Stop Direct Deposit Payments of Your Paycheck into a Joint Account Before Divorce?
You can stop having your paycheck deposited into a joint account before divorce, but the same rule applies. You must keep records of what you did with the money.
What Happens Once a Divorce Action is Filed?
Once you file for divorce, the Automatic Orders rule goes into effect. It requires the parties to maintain the status quo concerning the family finances and children during the entire pendency of the divorce. That means you cannotempty your joint account unless your spouse consents or you get a court order first.
If you are considering divorce, it’s important to prepare financially. Our attorneys can advise you regarding what information you need to gather and how to address your fears of having no funds. We are highly experienced in addressing the myriad issues arising in divorce and can help protect your rights at every stage. Contact us for a consultation today.
FAQs
It requires the parties to maintain the status quo concerning the family finances and children during the entire pendency of the divorce. That means you cannot empty your joint account unless your spouse consents or you get a court order first. If you are considering divorce, it's important to prepare financially.
What happens if a spouse empties a bank account? ›
What Should You Do If Your Spouse Empties Your Bank Account During A Divorce? A spouse who empties half of their bank account is not committing any legal actions. For this reason, a spouse cannot do anything, so long as that bank account is a shared bank account.
Can I remove myself from a joint bank account during a divorce? ›
State law or the terms of the account often mean you cannot remove someone else from a joint bank account without their consent. But you should be able to remove yourself unless the bank specifically prohibits it.
Can you move money around before a divorce? ›
It's possible to transfer money before a divorce, but it is a delicate process which you should not attempt on your own. If there's a chance your spouse will empty your joint bank account, you may want to consider transferring some of the funds to a separate account.
Can your bank account be frozen during a divorce? ›
The court has the power to freeze your bank accounts and other marital assets when you're in the middle of a divorce. We're not just talking about the house, cars, and furniture. Marital assets can include insurance policies, bank accounts, inheritances, and more.
Can I empty my bank account before divorce? ›
That means you cannot empty your joint account unless your spouse consents or you get a court order first. If you are considering divorce, it's important to prepare financially. Our attorneys can advise you regarding what information you need to gather and how to address your fears of having no funds.
Can a spouse hide bank accounts in a divorce? ›
Under California law, a marital relationship is a confidential relationship requiring the highest good faith and fair dealing. Accordingly, California law provides that all spouses have a duty to make a full disclosure of all their assets and provide equal access to all information related to their finances at divorce.
Does my husband have to pay the bills until we are divorced? ›
Until you have a court order, any property or debt from your marriage still belongs to both of you.
Can a wife take all the money from a joint account? ›
Many married couples have joint bank accounts. Each spouse has the right to make deposits into the account, and, each spouse has the right to withdraw from the account any amount up to the total balance. It's common for married spouses to have joint accounts for practical and romantic reasons.
What happens if you leave your bank account frozen? ›
Frozen accounts do not permit any debit transactions. When an account is frozen, account holders cannot make any withdrawals, purchases, or transfers. However, they may be able to continue to make deposits and transfer money into it. There is no set amount of time that an account may be frozen.
Only the account holder has the right to access their bank account. If you have a joint bank account, you both own the account and have access to the funds. But in the case of a personal bank account, your spouse has no legal right to access it.
Can I take money out of my dead husband's bank account? ›
The banks will then freeze the accounts until a Grant of Probate has been awarded. It's important to notify any relevant financial institutions as soon as possible after a death. Failing to do this, or continuing to use the person's bank card to make payments or withdrawals, is illegal.
Do banks freeze accounts when spouse dies? ›
A deceased person's bank account is inaccessible unless you're a joint owner, a beneficiary of the account or the estate executor. Because joint ownership and beneficiaries can make a difference in how your bank account funds are distributed, planning is key.
Does a wife have access to her husband's bank account? ›
Only the account holder has the right to access their bank account. If you have a joint bank account, you both own the account and have access to the funds. But in the case of a personal bank account, your spouse has no legal right to access it.
What happens if someone emptied my bank account? ›
Banks usually have 10 days to investigate fraudulent transactions, and they must correct the balance within one business day after determining an error occurred. It's best to check your credit reports to ensure your other financial information hasn't been stolen.
