What Happens to a Joint Bank Account during a Divorce?

Most 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.