Property division is one of the most important stages of the divorce process. The goal is to divide the assets equitably between the two spouses, which may not always work out to a 50-50 split. But when one spouse seizes assets for themselves, the situation gets complicated.
Bank Accounts and Divorces
In a divorce, bank accounts may be considered either separate or marital property. The distinction is important because it determines who can legally access the bank account’s funds.
Marital Bank Accounts
Marital bank accounts are those that are opened during the marriage. In most cases, the money deposited in them during the marriage belongs to both spouses. When the division of property occurs, the money in these accounts is divided fairly among the spouses.
Separate Bank Accounts
Sometimes, one or both spouses bring a bank account into the marriage. Generally speaking, these accounts aren’t marital property and thus belong solely to each respective spouse.
However, separate bank accounts may be designated marital property in certain situations. For example, if a spouse uses a pre-marriage savings account to deposit wages earned during the marriage, those wages will be subject to division.
When One Spouse Empties Bank Accounts
There are no real repercussions when a spouse empties a bank account of proceeds that are solely theirs — the money belongs to them by right and therefore isn’t subject to division in the divorce proceedings.
Unfortunately, it’s not uncommon for spouses to empty marital bank accounts leading up to or during a divorce.
The key term here is “leading up to.” Emptying an account years before a divorce is not a punishable offense, but doing so within a reasonable timeframe of a divorce can lead to consequences for the spouse making the withdrawal.
The Court Will Know
During a divorce, both parties must paint a complete picture of their assets, including their bank accounts. The court will review bank statements and note all deposits and withdrawals to get an accurate accounting of dubious financial activity.
There Will Be Financial Consequences
The spouse who withdrew the money will likely face penalties, fines, and court costs when discovered, especially if the withdrawal was made to harm the other spouse or in direct disobedience of the court.
Protecting Your Accounts
If you’re contemplating or going through a divorce, there are ways to protect your money from a spouse’s withdrawals. You’ll first want to become financially independent from your spouse and establish your financial accounts in your name alone.
Once you’ve done that, you’ll want to remove your name from any account associated with your spouse. Otherwise, they may go on a spending spree and could quickly rack up marital credit card debt, putting you on the hook for half of the bill.
Effective Representation in Your Divorce
Gucciardo Family Law is ready to help you deal with the problems that can arise during a divorce, including drained bank accounts. Call our office today to speak with a compassionate divorce lawyer who knows how to fight for your rights.
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FAQs
There are no real repercussions when a spouse empties a bank account of proceeds that are solely theirs — the money belongs to them by right and therefore isn't subject to division in the divorce proceedings. Unfortunately, it's not uncommon for spouses to empty marital bank accounts leading up to or during a divorce.
What to do if your spouse drains your bank account? ›
But, if that same spouse empties the entirety of the bank account that they share with their spouse, then this is an illegal act that violates an administrative order. To ensure that this money is not dissipated and/or concealed, the best thing one can do is to speak with a divorce lawyer.
How to legally stop a spouse from spending money? ›
An automatic temporary restraining order (ATRO): This legal document is a restraining order placed on each spouse. The ATRO focuses solely on property, preventing married couples from spending money that would upend and alter their marriage's current situation.
How to find out if your spouse is hiding money in another bank? ›
There are several methods to find hidden bank accounts, such as:
- Conducting online asset searches.
- Hiring a private investigator.
- Making legal requests for financial information.
- Utilizing state-sponsored websites and resources.
State law or the terms of the account often mean you cannot remove someone else from a joint bank account without their consent. But you should be able to remove yourself unless the bank specifically prohibits it.
Can a spouse hide bank accounts in a divorce? ›
Under California law, a marital relationship is a confidential relationship requiring the highest good faith and fair dealing. Accordingly, California law provides that all spouses have a duty to make a full disclosure of all their assets and provide equal access to all information related to their finances at divorce.
How do I protect my bank account in a divorce? ›
Open Your Own Bank Account
Most couples choose to establish a joint bank account when they get married. During a divorce, though, you should set up a bank account solely in your name as soon as possible. This step is especially important for spouses without jobs or who have been stay-at-home parents before the divorce.
What is financial infidelity in a marriage? ›
Key Takeaways. Financial infidelity is when couples with combined finances lie to each other about money. Examples of financial infidelity can include hiding existing debts, excessive expenditures without notifying the other partner, and lying about the use of money.
What is reckless spending in a divorce? ›
Reckless spending can be defined as spending marital funds for the benefit of one spouse for purposes unrelated to the marriage. It often takes place without the other spouse's knowledge, and always without their consent.
Should I spend money before divorce? ›
Because you want to avoid an allegation of dissipation of marital assets, you should put off large purchases until your divorce is finalized. Alternatively, if making a large purchase is unavoidable, such as a new car, you must be careful not to use shared assets to make the purchase.
Key Takeaway: Do not remove any funds from a joint bank account before the divorce proceedings are complete. The judge may award your spouse with a larger portion of the community property resources if you acted in bad faith. A prenuptial agreement may affect the rights you have to your financial assets.
Does a wife have access to her husband's bank account? ›
Only the account holder has the right to access their bank account. If you have a joint bank account, you both own the account and have access to the funds. But in the case of a personal bank account, your spouse has no legal right to access it.
What is a red flag that a spouse is hiding assets? ›
Gives Money to Friends or Family
It's a red flag if your spouse suddenly has loans to repay to family and friends. This is a tactic some people use to have a pile of cash when the divorce is final. Check your account for suspicious withdrawals.
What happens if someone drains your bank account? ›
The bank will be able to tell if the fraudulent charges were made with your debit card number or with your account number and bank routing number. The bank should provide you with both a new debit card and a new bank account number. Be sure to set them up with a strong PINs and/or passwords.
What to do if someone empties your bank account? ›
If an unauthorized withdrawal appears on your bank statement, but you did not lose your card, security code, or PIN or had any of them stolen, you should notify your bank or credit union right away.
Can my husband empty my bank account? ›
That means you cannot empty your joint account unless your spouse consents or you get a court order first. If you are considering divorce, it's important to prepare financially. Our attorneys can advise you regarding what information you need to gather and how to address your fears of having no funds.
Can my spouse remove me from your bank account? ›
In Most States, Banks Do Not Let You Remove a Spouse Without Their Consent. The vast majority of banks do not allow account holders to remove a spouse from a joint checking account without their consent, though there are some exceptions, depending on your state and the nature of the account.
