
Splitting a joint bank account after separation can be a daunting task, but it's essential to do it amicably to avoid any financial disputes.
First, you'll need to decide how to split the account, which can be done equally or based on a pre-existing agreement.
It's also crucial to consider the type of account you have, as some may require a formal agreement or court order to close.
In many cases, a joint bank account can be closed by one of the account holders, but it's always best to check with your bank first to confirm their policies.
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Essential Steps for Separation
Breaking up can be messy, especially when it comes to shared finances. It's essential to have a plan in place to protect your assets.
Discussing next steps together can be a great starting point, especially if your partner is willing to sit down and create a plan. Accredited family mediator Louisa Whitney recommends discussing how you feel about the joint account and whether its purpose has changed.
To separate your finances, start by knowing everything you own individually or co-own. Make a list of all your financial accounts, including chequing accounts, savings accounts, credit cards, and loans.
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7 Essential Steps

Breakups are often messy, especially if you share a mortgage, bank accounts, and bills.
Contacting your bank is the first step in splitting or closing a joint bank account.
Breakups can get complicated fast, especially when children are involved.
Make sure you protect your assets by following these essential steps.
Contacting your bank is the first step in splitting or closing a joint bank account.
Breakups are often messy, especially if you share a mortgage, bank accounts, and bills.
Add children to the mix, and things can get complicated, fast.
Contacting your bank is the first step in splitting or closing a joint bank account.
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Steps for Separation
Separating your finances can be a daunting task, but it's essential to get it right. Start by making a list of all your financial accounts, including chequing accounts, savings accounts, credit cards, auto loans, personal loans, lines of credit, tax liabilities, life insurance policies, CPP or QPP credits, pensions, TFSAs, RESPS, investments, RRSPs, homes, and property. Note whether each is a joint or personal account and the balance on each account.
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You'll also want to discuss next steps with your partner, if possible. This can help you create a plan and make decisions about your joint accounts. If you're lucky enough to have an amicable partner, take advantage of this opportunity to talk about how you feel about the joint account and its purpose.
Freezing joint accounts can be a good idea if you're worried that your spouse might transfer or withdraw money. You can also get an order to prevent the withdrawal of money over and above joint expenses. If your spouse has already withdrawn money, document what was taken out and when, as this can be included in the divorce settlement.
Closing joint bank accounts is a relatively straightforward process, starting with contacting your bank. Once you've agreed on the division of money, you can transfer the funds into separate accounts. Make sure to keep track of the joint account closely until the funds are divided and it's closed.
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Understanding Joint Accounts

A joint bank account is a type of account owned by more than one person, with both names on it. This allows either account holder to make transactions such as deposits, withdrawals, and closing the account.
Almost anyone can be a joint account owner, as long as they meet the bank's requirements. This includes spouses, adult children and their elderly parents, and even parents opening an account with a minor child.
You can separate your joint account through various methods, including the phone, in person, online, or via the app.
Joint Account Basics
A joint bank account is a checking, savings, or other type of deposit account owned by more than one person.
Both of your names will be on a joint bank account if it's owned by two people, and either of you can conduct transactions such as making deposits, withdrawals, writing checks, and closing the account.
Almost anyone can be a joint account owner as long as they meet the requirements of the bank.
Will the Court Split a Joint Account?

In California, joint bank accounts are considered community property, which means they're subject to equal distribution between divorcing spouses.
Each spouse is entitled to half of the joint account, regardless of how much they've deposited into it before filing for divorce.
California is one of the few states that adheres to community property laws, which can be a significant factor in how joint accounts are divided.
Assets that are considered separate by the courts will not be subject to equal distribution and will remain the sole property of the owner.
It's essential to understand that assets you may believe to be separate can be considered joint if they've been comingled with marital assets during your marriage.
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Handle Joint Accounts
If you have joint bank accounts, it's essential to close them and transfer the money into separate accounts after agreeing on the division of money. This can be done via a court order or a separation or divorce agreement.
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You can freeze the accounts or get an order to prevent the withdrawal of money over and above joint expenses if you haven't agreed on the division of money yet. Documenting any withdrawals made by your spouse can also be crucial for the divorce settlement.
If your spouse has already withdrawn money, make sure to keep a record of what was taken out and when. This information can be included in the divorce settlement to ensure a fair division of assets.
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Managing Joint Account During Separation
If you have joint bank accounts, it's essential to close them and transfer the divided money into separate accounts once you've agreed on the division of money.
You'll want to document any withdrawals made by your spouse, as this can be included in the divorce settlement. Keep track of the account closely until the funds are divided and it's closed.
Freezing the account or getting an order to prevent withdrawal can be an option if you haven't agreed on the division of money and are worried that your spouse might transfer or withdraw funds over and above joint expenses.
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Move Funds

You'll need to determine how to move funds from your joint account into separate accounts.
Make a plan to transfer the divided money into separate accounts once you've agreed on the division of money.
Freezing the accounts or getting an order to prevent withdrawal of money over and above joint expenses can be an option if you haven't agreed yet.
You can document what was taken out and when if your spouse has already withdrawn money from a joint account. This can be included in the divorce settlement.
Be cautious not to spend the funds frivolously, as you may be asked to account for them later.
It's generally recommended to only take half of the funds from a joint account, but be sure to follow local laws and consult with your divorce attorney for advice.
Divide Bills
Divide bills can get complicated during a separation, especially if you share a joint bank account with someone.

You should gameplan how your bills will get paid and come up with a written agreement that both parties will adhere to.
This can be done with or without the help of an attorney, but it's advisable to have an attorney look over the document prior to signing it.
A divorce attorney suggests creating a written agreement to simplify the process and avoid disputes.
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Contact Team
Contacting your bank is a crucial step in managing a joint account during separation. You can request limits on the account to prevent your partner from clearing out your funds without your consent.
Your bank likely sees many cases involving joint bank accounts and can guide you through the process. Attorney Lois Liberman recommends requesting limits on the account, such as not allowing transfers over $5,000 without written consent.
However, be aware that this directive can sometimes cause the bank to shut down normal transfers until joint instruction is received. This can be a problem if you need to access your funds.

Laws can vary from one municipality to the next, so it's essential to consult with a divorce attorney who can guide you through the legal aspects. In California, for instance, you cannot remove a spouse from a joint account once a divorce is initiated.
Opening a new account can be a good solution, allowing you to move your personal funds and give your spouse notice that you will remove the funds and not deposit additional money into the account.
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Financial Planning in Divorce
Getting divorced can have a major impact on your finances.
Your financial situation may be significantly altered after a divorce, which is why it's essential to prioritize financial planning during this process.
Divorce can lead to changes in income, expenses, and debt, so it's crucial to reassess your financial situation and create a new budget that reflects these changes.
Consider consulting a financial advisor to help you navigate the financial aspects of your divorce, especially if you're not familiar with managing your own finances.
Resolving Disputes
Resolving disputes over joint bank accounts can be a challenge, especially if money was a source of tension in your relationship. A mediator can help you work through the details and have constructive discussions about your finances.
Talking about money can be really uncomfortable, but a mediator can provide a neutral and safe space to address your concerns. This can be especially helpful if you're struggling to communicate effectively.
A certified divorce financial analyst (CDFA) can also provide valuable guidance on financial matters, such as property and tax issues, retirement plans, and IRS rules. They can help you navigate the complexities of divorce and make informed decisions about your financial future.
Clear communication and fair negotiation are essential for reaching a resolution, especially in a Florida divorce.
Emergency Situations
In emergency situations, having a joint bank account can be a lifesaver. If one partner dies, the other can easily access funds to cover funeral expenses, which can range from $7,000 to $10,000.
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Having a joint account also helps in case of a medical emergency, where one partner may need to pay for unexpected medical bills. This can be especially true if one partner has a pre-existing condition that requires ongoing medical attention.
In the event of a divorce, a joint account can help both partners split assets more easily. This can be especially helpful if you have joint debts, which can total up to 50% of your combined income.
In any emergency situation, it's essential to have a plan in place for accessing funds quickly and easily. This can include setting up automatic transfers or having a joint credit card.
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Sources
- https://www.thepennyhoarder.com/bank-accounts/split-a-joint-bank-account/
- https://www.scotiabank.com/ca/en/personal/advice-plus/features/posts.what-you-need-to-know-about-splitting-your-finances-after-a-divorce.html
- https://www.levinefamilylaw.com/how-to-split-bank-accounts-in-divorce/
- https://www.zitserlaw.com/blog/what-will-happen-to-a-joint-bank-account-in-a-california-divorce/
- https://www.sofi.com/learn/content/splitting-joint-bank-accounts/
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