If you are in the unfortunate situation of getting divorced, then you may be wondering how to sort o
If you are in the unfortunate situation of getting divorced, then you may be wondering how to sort out your joint bank accounts. Whether the divorce is amicable or not, it is important that you both agree on how to lit the monetary funds in your joint accounts so that you both get a fair deal. Here is some advice on how to handle joint bank accounts and the problem of divorce.
Freezing accounts
If you ware worried about funds in the account being removed, then you can get a freeze placed on the account which requires both parties to give permi ion before any money is removed. Although this may be a good temporary solution to avoid money being removed, it will obviously harm both of you if no money can be released. However, it is a good point to start from and e ures that the account remai untouched and there is motivation on both sides to solve the situation.
50/50 lit
If the divorce is amicable and you feel that you are both of an equal financial standing, then the easiest way to sort out the problem of joint accounts is for one person to open a new account and deposit half of the money into that account. The other partner can then change the joint account to a single account, thus leaving each of you with half the money in the account. This is the quickest and easiest way to sort out any problems, but is not always po ible if you are of different financial standings and an agreement ca ot be reached.
Dont leave the situation
Although you might think the situation will sort itself out, if your ex partner removes all of the money from the account and liquidates it without your knowledge, you could be left in serious financial trouble. Although you should be able to get the money back through the divorce settlement proce , this could take months and leave you short of funds in the meantime. Whatever you do, make sure that you dont just leave the situation to sort itself out.
Credit cards
If you hold joint credit cards, then it is important that you cancel your card and inform the bank in writing that you want to be removed from the credit card account due to impending divorce and that you will not be held re o ible for any extra debts that are accumulated. Obviously, you will both still be re o ible for any current debts, but make sure that anything your ex partner ends is not your concern. This a lies to other bills such as phone bills etc.
Safety deposit boxes
Perha the hardest type of joint monetary a et to control is a safe deposit box. If one or both of you is self-employed then you might keep money in a safety deposit box. If you get divorced then there is no sto ing one of you from emptying the box and leaving the other person with nothing. As soon as divorce is a po ibility you should try and get the box frozen so that neither you nor your partner can acce it on their own. If your bank wont comply then take photos of the contents and get someone to sign it to confirm the contents in case they are removed. If you can remain civil with each other and take the nece ary precautio , then you can both end up with the right amount of money from your joint accounts should divorce occur.
Freezing accounts
If you ware worried about funds in the account being removed, then you can get a freeze placed on the account which requires both parties to give permi ion before any money is removed. Although this may be a good temporary solution to avoid money being removed, it will obviously harm both of you if no money can be released. However, it is a good point to start from and e ures that the account remai untouched and there is motivation on both sides to solve the situation.
50/50 lit
If the divorce is amicable and you feel that you are both of an equal financial standing, then the easiest way to sort out the problem of joint accounts is for one person to open a new account and deposit half of the money into that account. The other partner can then change the joint account to a single account, thus leaving each of you with half the money in the account. This is the quickest and easiest way to sort out any problems, but is not always po ible if you are of different financial standings and an agreement ca ot be reached.
Dont leave the situation
Although you might think the situation will sort itself out, if your ex partner removes all of the money from the account and liquidates it without your knowledge, you could be left in serious financial trouble. Although you should be able to get the money back through the divorce settlement proce , this could take months and leave you short of funds in the meantime. Whatever you do, make sure that you dont just leave the situation to sort itself out.
Credit cards
If you hold joint credit cards, then it is important that you cancel your card and inform the bank in writing that you want to be removed from the credit card account due to impending divorce and that you will not be held re o ible for any extra debts that are accumulated. Obviously, you will both still be re o ible for any current debts, but make sure that anything your ex partner ends is not your concern. This a lies to other bills such as phone bills etc.
Safety deposit boxes
Perha the hardest type of joint monetary a et to control is a safe deposit box. If one or both of you is self-employed then you might keep money in a safety deposit box. If you get divorced then there is no sto ing one of you from emptying the box and leaving the other person with nothing. As soon as divorce is a po ibility you should try and get the box frozen so that neither you nor your partner can acce it on their own. If your bank wont comply then take photos of the contents and get someone to sign it to confirm the contents in case they are removed. If you can remain civil with each other and take the nece ary precautio , then you can both end up with the right amount of money from your joint accounts should divorce occur.
