September 11, 2023Most married couples combine their finances and share joint accounts that allow each spouse equal access in terms of both depositing and withdrawing funds. This status, however, ceases when either one files for divorce. Upon divorce, a couple’s marital assets must be divided between them fairly – in accordance with California’s community property laws. If you’re considering filing for divorce or your spouse has already filed, it’s time to consult with an experienced Ventura divorce attorney.
Your Joint Account
Even if one of you was the primary breadwinner – or the only spouse with an income – your joint bank account remains marital property, which is typically divided evenly between divorcing couples in California. In fact, even if one spouse is the only contributor to the account and even if the account is in their name alone, the amount in the account is almost certainly a marital asset. The only exceptions include:
- The account is linked to one spouse’s separate assets – that were owned prior to the marriage – and is not intermingled with marital assets.
- The account was opened separately after the spouses separated – even if neither spouse had filed for divorce yet.
- One spouse contributed separate funds after separation, which means only the balance as of the date of separation is subject to equitable division.
Removing Funds Prior to Filing
If one spouse is preparing to file for divorce or believes the other is preparing to, they can remove funds from the joint account. This said, however, a spouse who takes out more than their equitable share will likely need to address the matter during the divorce process. Keeping scrupulous financial records helps to keep both spouses honest regarding the division of joint accounts.
If you choose to take funds out of your joint account prior to divorce, ensuring that you don’t take more than half the total amount and carefully accounting for your transactions is the best means of demonstrating your good faith efforts to remain on the right side of the law. Ultimately, consulting with a seasoned divorce attorney before embarking on a financial move of this nature is in your best interest.
A Notice of Injunction
In some divorces, a notice of injunction is issued on a bank account, which often accompanies a temporary order not to sell off marital assets. This is a means of preventing either spouse from hiding funds or otherwise thwarting the equitable division of marital assets. Any attempt to transfer, access, or borrow against funds that are under injunction is considered fraud, and contempt or theft charges can apply.
Seek the Legal Guidance of An Experienced Ventura Divorce Attorney
The trusted Ventura divorce attorneys at Bamieh & De Smeth, proudly serving Ventura and Santa Barbara, recognize how important a joint account can be in relation to your finances – both while your divorce is pending and post-divorce. We have the keen legal skill to help protect your financial rights throughout the legal process, and we encourage you to learn more by contacting us online or calling us at 805-643-5555 today.
FAQs
The funds in your joint bank accounts may be divided between spouses in a divorce if they are considered marital property. Simply having both spouses' names on the account does not guarantee that the funds are subject to community property laws.
Can you empty a joint bank account before divorce? ›
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.
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.
Do I have to close a joint account after divorce? ›
If you're in the process of getting a divorce, you typically don't have the right to take that money for yourself and run off with it. It generally pays to close a joint bank account once the funds have been distributed equitably and your divorce is finalized.
How do I protect my bank account during divorce? ›
How to Keep a Bank Account Separate?
- The account should have only your name on it, not your spouse's.
- The account should not receive deposits of community property. Money earned during the marriage cannot go into the separate account.
- Any inheritance money or gifts made to you can go into a separate account.
As the name suggests, a joint bank account is one owned by two or more people. Each party has the right to deposit funds, make decisions regarding the account, and withdraw money. If you are in the process of divorce, you and your spouse each have a legal right to empty the account.
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.
What is financial infidelity in a marriage? ›
Financial infidelity occurs when one partner hides or misrepresents financial information from the other, such as keeping secret bank accounts or hiding purchases. It does not necessarily involve marital infidelity, though it can lead to divorce.
Can only one person withdraw money from joint account? ›
Both account holders can also add funds or withdraw them from the account. The money in joint accounts belongs to both owners. Either person can withdraw or spend the money at will — even if they weren't the one to deposit the funds.
Can I sue someone for taking money from a joint account? ›
What should I do if my ex-partner takes money from our joint account or runs up debt on our joint credit card without my permission? If your ex-partner takes money from your joint account or runs up debt on your joint credit card without your permission, you may be able to sue them in court.
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 close a joint bank account without my spouse? ›
In Most States, Banks Do Not Let You Remove a Spouse Without Their Consent. The vast majority of banks do not allow account holders to remove a spouse from a joint checking account without their consent, though there are some exceptions, depending on your state and the nature of the account.
Can I get in trouble for taking money out of a joint account? ›
Either person can withdraw or spend the money at will — even if they weren't the one to deposit the funds. The bank makes no distinction between money deposited by one person or the other, making a joint account useful for handling shared expenses.
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.
