Divorce and Joint Bank Accounts
Posted on January 10, 2006
It's no secret that well over 50% of marriages end in divorce. When many couples get married they decide to join in another important bond. They open a joint account; this can seem like a good idea when you're married because it's easier to keep track of finances. However, with divorce statistics not working in married couple's favor you should know what to do in the event of having a bank account with someone you are divorcing.
Be aware that if your name is on an account and if there are problems with it, your name will be reported as well and negatives will show on your credit report. As long as there's an outstanding balance on a joint account, you and your ex-spouse are responsible for it.
It's in your best interest to close the account in the case of divorce or to ask your financial institution to make it into two separate accounts. It's recommended if you do not trust your ex-spouse to handle finances, to freeze the account as soon as you've made the decision to divorce. Neither of you will be able to touch the funds. This is a good temporary fix until the both of you decide what direction you will go in with your money.
If it's an amicable divorce and you believe that the two of you have put equal funds into the account, open an account and have half the money deposited and allow your spouse to keep the other account with the money already in it.
If you hold joint credit cards, it's important to cancel your card and inform the bank in writing that you want to be removed from the account due to a divorce and that you will not be held responsible for extra debts, but you will obviously be responsible for current debts. This applies to other bills such as phone bills etc.
It is a very stressful situation to go through a divorce so make sure you are not having the extra stress of watching over your ex-spouses finances.
Contributing National Payday Staff Writer
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