When couples get divorced, one step they often take is to divide their finances. Divorce is a common reason why people close down a shared bank account. While they were married, the couple may have been receiving all of their paychecks in the same bank account and then using it to pay joint expenses, such as the mortgage. But moving forward, they want to have individual accounts for their earnings and expenses.
So does that mean that you should just drive to your bank or credit union and close down the account as soon as your spouse files for a divorce? It’s important to know how this process works.
You may need to do it together
First of all, check with your financial institution to see what the protocol is for closing a joint bank account. In some cases, both of you need to go to a physical branch and sign the paperwork together. This makes it impossible for either you or your ex to clean out the account and close it down on your own.
The thing to remember is that both you and your ex likely have a right to the money in that account, as it is a marital asset. So if you take all of the money out and put it into your own personal account, then your spouse may claim that you’re trying to hide assets or deprive them of the money that they earned. This can severely complicate the divorce, as the court will want to follow state law determining how marital assets should be split between both of you.
In other words, not only is it important to take the proper steps when closing down a bank account, but you also need to know what legal options you have if there’s a dispute in the future.