Divorce can be a complex and emotional process, especially when it comes to finances. One important aspect that many couples need to address during a divorce is the status of their joint bank accounts. Understanding the implications of joint accounts can help ensure a smoother transition for both parties. Certified California Family Law Specialist Judy L. Burger reviews this issue and offers some guidance.
Understanding Joint Bank Accounts
A joint bank account is a financial account shared by two or more individuals. This type of account enables both parties to deposit, withdraw, and manage funds. While joint accounts can simplify finances during marriage, they can lead to complications during divorce.
Here are some critical factors to remember regarding divorce and joint bank accounts:
- Ownership of Funds: California follows community property laws, so most assets and debts acquired during the marriage are considered community property. This means both spouses typically have equal rights to the funds in a joint account, regardless of who initially deposited the money.
- Access to Accounts: Upon filing for divorce, it is essential to understand that both parties generally retain access to joint bank accounts until a court order dictates otherwise. This can lead to potential conflicts, particularly if one spouse withdraws a significant amount of money. To mitigate this risk, closing joint accounts or agreeing on a set amount each party can withdraw may be advisable.
- Financial Records: Accurate financial records of transactions from joint accounts are important. This documentation can be crucial during the divorce process, especially when determining the division of assets. Consider keeping copies of bank statements and transaction receipts.
- Risk of Seizure: Funds in a joint account may be subject to seizure by the government to fulfill any outstanding obligations. This can include back taxes, child support payments, or other court-ordered garnishments.
You should note that these factors do not just apply to bank checking and savings accounts. They also apply to joint investment, retirement, and other accounts. Get more advice about joint financial accounts from Certified Family Law Specialist Judy L. Burger before your divorce.
Steps to Take When Navigating Joint Accounts in Divorce
Don’t wait until divorce proceedings are underway or disagreements arise before considering how to handle marital assets. CA Property Division Attorney Judy Burger offers the following recommendations:
- Communicate: If possible, communicate clearly with your spouse about the handling of joint accounts. Establishing open lines of communication can help reduce misunderstandings and conflicts during the divorce process.
- Open Separate Accounts: If you haven’t done so already, it may be wise to open individual bank accounts. This allows you to establish financial independence and manage your funds separately from your spouse moving forward.
- Seek Legal Guidance: Consulting with CA Divorce Attorney Judy L. Burger can clarify your rights regarding joint accounts. She can guide you through the process and help ensure that your interests are protected.
When dividing joint accounts during divorce, the court typically aims for an equitable distribution of community property. This can include splitting the funds into joint bank accounts and determining how any debts associated with these accounts will be handled. However, this is not as straightforward as it sounds. Some funds in the joint account may not be community property, and a spouse may request that those funds be separated and given to them.
Property Divisions with Joint Bank Accounts
Navigating joint bank accounts during a divorce can be challenging. Being informed about your rights and responsibilities is crucial. You can better manage the complexities of joint accounts during your divorce by communicating openly with your spouse, maintaining thorough financial records, and seeking professional advice.
If you are facing a divorce and need assistance with financial matters, reach out to CA Divorce and Property Division Attorney Judy L. Burger. She can provide the support and guidance necessary to protect your financial interests during this transitional period. Contact one of our eight California offices directly by phone or request a consultation through our contact form.
