Breaking up is hard to do, and when you and your spouse have joint bank accounts, you need to know the right way to split them. While some married couples maintain separate bank accounts, many share joint bank and investment accounts, making the divorce process more complex financially. When you’re getting divorced, you want to make sure that you protect your finances and ensure that you’ll have money to get you through the divorce and beyond.
Your first step is to figure out exactly what accounts you and your spouse have, whose name is on each of them, and what the accounts are used for. This means taking a complete inventory of not just your checking and savings accounts, but also any investment accounts, retirement accounts, or other financial holdings you share. Pay special attention to which accounts are individual versus joint ownership, as this will significantly impact how they’re handled during divorce.
Many couples have one joint checking account that is used to pay the monthly bills related to the home, including the mortgage, utilities, and other household expenses. It might make sense to leave that account alone and continue to use it as you always have since the house bills will still need to be paid during the divorce. However, you’ll want to have clear agreements about who will contribute to this account and how those shared expenses will be handled going forward.
Next, set up a bank account that only has your name on it. You might even consider establishing this account at a different bank than the one you and your spouse use. This gives you more protection and ensures that your spouse isn’t accidentally given access to the account. When choosing a new bank, look for one with strong security measures and fraud protection. If you’re employed, arrange to have your paycheck deposited directly into this new account rather than your joint account.
Be aware that any bank or investment account that has both of your names on it could be drained at any time by either of you. Banks generally don’t require permission of the other accountholder to take money out of the account. You could wake up one day to an empty bank account. This risk becomes even more serious in the age of online banking, where large sums can be transferred instantly with just a few clicks.
This is why it is important to consider taking some or all of the money in a joint account and putting it in an account that has only your name on it. This is not “stealing,” although your husband will likely say that it is. This is protecting money and ensuring that you’ll have money to live on during the divorce.
If you move money into a separate account, be prepared to fully account for all of that money during the divorce. You’ll need to provide account statements that show where the money went and what it was spent on. This is not about hiding the money or being secretive. It is about protecting the money so your spouse can’t take it from you. Keep meticulous records of any transfers you make and maintain a clear paper trail of how funds are used.
Here are some warning signs that your husband might be planning financial moves of his own:
- Unusual account inquiries or password changes
- Large or unexpected withdrawals
- New accounts appearing on shared statements
- Changes in billing addresses
- Requests for additional account access
As you establish your independent financial life, you’ll also want to think about your broader financial infrastructure. This includes opening a credit card in your name only, setting up online bill pay for your personal expenses, and creating a realistic budget based on your new financial situation. Start building an emergency fund if possible, as divorce often comes with unexpected expenses.
Throughout this process, it’s crucial to work closely with your divorce attorney. He or she can advise you on what percentage of joint funds you can reasonably transfer, how to document your financial actions properly, and whether you need to seek court intervention or temporary support orders. Your lawyer can also help you respond effectively if your spouse does attempt to drain joint accounts.
The biggest concern when splitting bank accounts is protecting yourself financially. Make sure you have access to funds as you enter into divorce and don’t be left with an empty bank account. Remember that taking steps to protect your financial interests during divorce isn’t about being vindictive or secretive – it’s about ensuring you have the resources to cover your basic living expenses, pay for legal representation, maintain stability during the transition, and create a foundation for your post-divorce life.
