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Is it problematic to close a bank account during divorce?

On Behalf of | Jan 21, 2025 | Divorce

\Your spouse tells you they would like to get a divorce, and the two of you decide to divide your finances. Previously, you’ve been using a joint bank account to pay bills and receive your paychecks. Now, you’re planning to split things up by closing the joint account and opening one of your own. Your spouse will do the same, making the property division process easier as your marriage ends.

In general, it’s fine to close a bank account during a divorce, but it’s important to do so correctly. For example, your bank may require both of you to be present to close the account. Even if this isn’t required, it’s crucial to communicate with your spouse so they are part of the process.

Allegations of hiding assets

The problem with closing a bank account on your own is that your spouse could accuse you of trying to hide assets they are entitled to. The funds in your joint bank account likely qualify as marital assets and must be divided between you. If you empty the account without giving them their share, they could claim in court that you’re hiding assets to deprive them of what they deserve.

Additionally, remember that your spouse may have a legal right to a portion of those funds during the property division process. Even if you don’t split the money now, you may be ordered to do so later. If you’ve already spent the money—this could be considered dissipation of marital assets—then you may be required to surrender other assets of similar value to make up the difference.

Navigating the financial side of divorce

The financial aspects of divorce can become complicated, so it’s essential to understand the legal steps you need to take at this time.