Peter
Kenny
If you are in the unfortunate situation of getting
divorced, then you may be wondering how to sort out your joint
bank accounts. Whether the divorce is amicable or not, it is important
that you both agree on how to split the monetary funds in your
joint accounts so that you both get a fair deal. Here is some
advice on how to handle joint bank accounts and the problem of
divorce.
Freezing accounts
If you ware worried about funds in the account
being removed, then you can get a freeze placed on the account
which requires both parties to give permission before any money
is removed. Although this may be a good temporary solution to
avoid money being removed, it will obviously harm both of you
if no money can be released. However, it is a good point to start
from and ensures that the account remains untouched and there
is motivation on both sides to solve the situation.
50/50 split
If the divorce is amicable and you feel that you
are both of an equal financial standing, then the easiest way
to sort out the problem of joint accounts is for one person to
open a new account and deposit half of the money into that account.
The other partner can then change the joint account to a single
account, thus leaving each of you with half the money in the account.
This is the quickest and easiest way to sort out any problems,
but is not always possible if you are of different financial standings
and an agreement cannot be reached.
Don’t leave the situation
Although you might think the situation will sort
itself out, if your ex partner removes all of the money from the
account and liquidates it without your knowledge, you could be
left in serious financial trouble. Although you should be able
to get the money back through the divorce settlement process,
this could take months and leave you short of funds in the meantime.
Whatever you do, make sure that you don’t just leave the
situation to sort itself out.
Credit cards
If you hold joint credit cards, then it is important
that you cancel your card and inform the bank in writing that
you want to be removed from the credit card account due to impending
divorce and that you will not be held responsible for any extra
debts that are accumulated. Obviously, you will both still be
responsible for any current debts, but make sure that anything
your ex partner spends is not your concern. This applies to other
bills such as phone bills etc.
Safety deposit boxes
Perhaps the hardest type of joint monetary asset
to control is a safe deposit box. If one or both of you is self-employed
then you might keep money in a safety deposit box. If you get
divorced then there is no stopping one of you from emptying the
box and leaving the other person with nothing. As soon as divorce
is a possibility you should try and get the box frozen so that
neither you nor your partner can access it on their own. If your
bank won’t comply then take photos of the contents and get
someone to sign it to confirm the contents in case they are removed.
If you can remain civil with each other and take the necessary
precautions, then you can both end up with the right amount of
money from your joint accounts should divorce occur.
Peter Kenny is a writer for The Thrifty Scot. Please visit us
at Best Bank Accounts and Savings Accounts
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