In 2021 alone, almost 690,000 U.S. marriages ended in divorce, says Forbes. If you and your spouse are in the process of splitting up, there's apt to be a host of financial issues to work through. What will you do about your home and mortgage? Who's responsible for paying off the credit cards? And what if you have a joint bank account?
You may be tempted to take a massive withdrawal from your joint bank account if you and your spouse are parting ways. After all, you contributed to that account, so you have rights to that money. But so does your spouse.
Withdrawing more than your fair share from your joint bank account could get you into trouble if you're going through a divorce. So you're better off dividing up that money in an equitable fashion.
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You both have a right to that cash
When you're married, you can take large withdrawals from a joint checking account without raising red flags. Granted, your spouse may not be too happy about it if you remove $5,000 without consulting them first, but it's technically your right to do that.
When you're in the process of going through a divorce, things work a little differently, though. Funds held in a joint bank account are generally considered marital property, and, as such, they must be divided according to state laws. So if you go and empty out 80% of the cash in your joint account and attempt to keep it for yourself, chances are, a judge is going to rule that you have to pay some of that money back to your soon-to-be ex-spouse.
In many cases, a judge overseeing divorce proceedings will award each member of a splitting couple 50% of what's in a joint bank account. There can be exceptions, but your best bet is to leave that money alone until you receive instructions on what to do with it.
When you're able to resolve things fairly
If you and your soon-to-be ex-spouse are on good terms, you may just agree to close your joint bank account together and divide the money equally without having to get a judge or lawyer involved. Just as you have the right to open a joint bank account, you have the right to close one provided you're both in agreement.
And to be clear, it really doesn't make sense to retain a joint bank account once your divorce is finalized. The only exception may be if you're contributing to that account equally for the sake of a child, or covering a child's expenses. But even then, you're generally better off keeping separate accounts once your marriage has ended.
It can make a lot of sense to have a joint bank account during your marriage. But once your marriage is over, it's generally not wise to commingle your finances in any way. So while you and your almost-ex-spouse might find the idea of keeping your joint account active more convenient, the reality is that it's generally not a great idea.
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