Here’s What Happens to Your Joint Bank Account When You Get Divorced

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

Divorces are fairly common. Read on to see how to manage a joint bank account if you’re going through one. 

In 2021 alone, almost 690,000 U.S. marriages ended in divorce, says Forbes. If you and your spouse are in the process of splitting up, there’s apt to be a host of financial issues to work through. What will you do about your home and mortgage? Who’s responsible for paying off the credit cards? And what if you have a joint bank account?

You may be tempted to take a massive withdrawal from your joint bank account if you and your spouse are parting ways. After all, you contributed to that account, so you have rights to that money. But so does your spouse.

Withdrawing more than your fair share from your joint bank account could get you into trouble if you’re going through a divorce. So you’re better off dividing up that money in an equitable fashion.

You both have a right to that cash

When you’re married, you can take large withdrawals from a joint checking account without raising red flags. Granted, your spouse may not be too happy about it if you remove $5,000 without consulting them first, but it’s technically your right to do that.

When you’re in the process of going through a divorce, things work a little differently, though. Funds held in a joint bank account are generally considered marital property, and, as such, they must be divided according to state laws. So if you go and empty out 80% of the cash in your joint account and attempt to keep it for yourself, chances are, a judge is going to rule that you have to pay some of that money back to your soon-to-be ex-spouse.

In many cases, a judge overseeing divorce proceedings will award each member of a splitting couple 50% of what’s in a joint bank account. There can be exceptions, but your best bet is to leave that money alone until you receive instructions on what to do with it.

When you’re able to resolve things fairly

If you and your soon-to-be ex-spouse are on good terms, you may just agree to close your joint bank account together and divide the money equally without having to get a judge or lawyer involved. Just as you have the right to open a joint bank account, you have the right to close one provided you’re both in agreement.

And to be clear, it really doesn’t make sense to retain a joint bank account once your divorce is finalized. The only exception may be if you’re contributing to that account equally for the sake of a child, or covering a child’s expenses. But even then, you’re generally better off keeping separate accounts once your marriage has ended.

It can make a lot of sense to have a joint bank account during your marriage. But once your marriage is over, it’s generally not wise to commingle your finances in any way. So while you and your almost-ex-spouse might find the idea of keeping your joint account active more convenient, the reality is that it’s generally not a great idea.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you 11x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More