How do I close a joint account during divorce?
Please note that these answers are not legal advice. If you’re in need of legal advice or a lawyer please visit our Expert Guide
Here are the steps to close or separate joint bank accounts during a divorce:
Review the Account Terms: Before taking any action, review the account agreements and any prenuptial or postnuptial agreements that may dictate how funds should be handled.
Consult with Your Attorney: It's important to understand your legal rights before moving any money. In some cases, emptying or altering joint accounts without consent could be viewed negatively during divorce proceedings.
Document the Balance: Take screenshots or print out recent statements to capture the current balance and any recent transactions. This documentation is crucial for property division negotiations.
Freeze the Account (if necessary): If you suspect your spouse might drain the account, you can request a temporary freeze. This prevents large withdrawals without mutual consent.
Discuss Division Terms: In many cases, spouses will agree to split the balance equally or based on their contributions. If you can't agree, the court may decide.
Withdraw Your Share (if appropriate): After legal consultation, you may withdraw your portion of the funds and place it in a separate account. Ensure you document the amount and date of the transaction.
Close or Convert the Account: If both parties agree, you can close the account entirely or convert it to an individual account in one person's name.
Update Direct Deposits and Payments: Ensure any automatic deposits (like paychecks) and payments are rerouted to your personal account.
Notify the Bank of the Divorce: Some banks allow you to add a note to the account about the divorce, which can help prevent unauthorized changes.
Monitor the Account: Continue to check the account until it is officially closed to ensure there are no unauthorized transactions.
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