For many, divorce is not only a complex emotional matter, but a complicated financial matter as well. Unfortunately, many are unsure what will happen to their finances during these times, which is why understanding how bank accounts and other assets are divided is critical. As such, the following blog explores what will happen to the funds held in a joint bank account when you and your spouse decide to divorce. You’ll also discover how a Nassau County property distribution lawyer can help you through these challenging matters.
How Is a Joint Bank Account Handled During a Divorce?
When you and your spouse divorce, understanding what will happen to your jointly owned assets is critical. In New York, assets owned by both spouses are considered marital property and are subject to the equitable distribution standard. Your assets will be divided based on each party’s contribution, rather than an equal split. However, assets that are separately owned are not subject to division between spouses, unless it’s determined they were comingled. This occurs when martial funds are combined with separate assets, like taking money from a shared account and depositing it in a separate account.
As such, in the case of a joint bank account, the judge will likely look at how much each spouse has deposited in the account and use that as a basis to divide the assets.
However, they will also consider several other factors, based on the circumstances of the spouses. For example, if one spouse left their job to raise the couple’s children, they can’t contribute much to the account. As such, this would be taken into consideration by the judge.
What Happens if My Spouse Empties the Account?
When you file for divorce, you may be worried about the possibility of your spouse emptying the bank account before the assets held inside can be distributed. If this occurs, you may be concerned that you won’t be able to recover the funds you are entitled to. If this happens, you may be able to notify the bank about the divorce and ask them to freeze the account. Additionally, after filing, the court may order an injunction on the account, which prevents either party from accessing the funds in the account.
If your spouse withdraws all the money in the account or spends a considerable amount on frivolous purchases, it may be considered marital waste. Your spouse could face legal repercussions for this, like relinquishing the funds their spouse is entitled to and being held in contempt of court.
When you and your spouse are divorcing and need legal help, Barrows Levy, PLLC is ready. We understand how complicated these matters can be, which is why our firm is prepared to guide you through these difficult matters. Connect with us today to learn how we can assist you with any problems you may face.
