Going through a divorce? Here’s how to deal with your joint accounts
Joint bank accounts during a divorce

What to do with your joint bank accounts during a divorce

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Learn the first steps of closing joint accounts when pursuing the difficult decision to divorce.

Ending a marriage can take its toll on your emotions, your time and your finances — especially if you and your spouse must also take on the task of sorting out joint bank accounts.

Rates last updated June 25th, 2018
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What should I do first?

To protect yourself when unwinding your finances and closing joint accounts:

  • Establish your own financial identity. First, open an account in your name only so that you can seamlessly pay for everyday expenses while separating your joint finances.
  • List all assets and debts in your name. Calculating your net worth ahead of time will help with the division of jointly owned assets.
  • Keep track of your date of separation. Depending on the state you live in, you may be required to be separated for six months or more before you can legally pursue a divorce.
  • Determine a budget and set financial goals. Settling into single life includes budgeting for it. Write down your complete financial obligations, including rent, utility bills, credit card and loan repayments, bank account balances, investments, retirement accounts, insurance policies and tax records.

Will closing a joint account hurt my credit score?

How long you’ve held a particular checking or savings account plays no role in your credit history or future credit approval. Because it is not a factor in your FICO score, you can close these banks accounts without worry.

How do I close a joint account?

If your separation is amicable, consider visiting the bank together with your spouse to close your joint accounts in person. Doing so will ease the possibility of any misunderstanding about the accounts’ balances and where you’ll be moving the money to.

You’ll need to take along your government-issued ID, such as a driver’s license or passport, and may be required to complete and sign paperwork to either transfer or release the funds. To avoid bounced check and other fees, ask about outstanding checks, direct deposits or scheduled payments pending before you close your account.

How much of our joint accounts am I entitled to?

When you share an account, you and your spouse both have access to your joint funds. Which means that during a divorce, you’re entitled to half of the money in the account. Discuss any outstanding bills and joint payments before you divvy up the funds. And don’t forget to update any beneficiaries on any accounts you take over or keep open.

Do I need to do anything with our children’s accounts?

Money in accounts set aside for your children don’t count as marital assets in a divorce. The courts will determine the parent who will maintain control of the account, but money in the account is considered the child’s money.

If you or your spouse are tempted to put money in a child’s account to hide it during the divorce, keep in mind that all assets acquired during your time as a couple will be accounted for in court.

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    When the separation is not amicable

    If you and your spouse are unable to come to an agreement on the division of your assets, protect yourself by seeking the guidance of a mediator or divorce attorney. A professional can help you freeze any joint accounts or deal with joint properties while you pursue a divorce, as well as update any life insurance beneficiaries or provisions in your will.

    Focus on your future

    If you maintained little or no control over your household finances when you were married, you’ll want to take stronger charge of your finances as you go through your divorce.

    Closing this chapter of your life, remember that getting back on track takes time. Look at managing your own money and focusing on your future as a step toward greater financial independence.
    What to do with your mortgage debt after a divorce

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    2 Responses

    1. Default Gravatar
      TodApril 9, 2018

      I have been asked for a statement of contribution to a joint account. How do I word it so I will not need to contribute to it after the divorce?

      • finder Customer Care
        joelmarceloApril 10, 2018Staff

        Hi Tod,

        Thanks for leaving a question on finder. We are a leading comparison website and we give general advice.

        For your unique case, you can consider getting in touch with a lawyer so you can get a
        personalized, professional advice.

        Cheers,
        Joel

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