20 Jan Why You Shouldn’t Empty a Joint Bank Account During Divorce
During a divorce, tensions are high. Understandably, you want to protect your finances during this difficult time. It may be tempting to take out all the money in your bank account you share with your partner to safeguard your assets, but you shouldn’t empty a joint bank account during divorce. Learn why so you can avoid making this mistake during your divorce.
It Can Lead to Legal Consequences
Emptying a joint bank account during a divorce can result in legal consequences. Most states in the US have laws about separating assets during a divorce. In a community property state like ours, all assets and debts are considered communal in nature and owned by both parties. If you remove all funds from your joint account, without agreement from both parties, you may be accused of violating asset division laws or hiding assets. This can lead to civil penalties if there is a court order to leave accounts and funds alone, and often repayment of these funds, depending on the circumstances of your case.
Sometimes, a judge may allocate a larger share of assets to the spouse who did not empty the bank account. This is called an equalizing payment and can make your financial situation even worse in the long run.
It May Complicate Child and Spousal Support Decisions
During the divorce, the court will consider the financial resources the community has access to and determine child or spousal support based on this information. If you’ve emptied the joint bank account and made it difficult for one spouse to live or support the children of the marriage the judge will consider your actions. If the court finds that you have limited your spouse’s financial resources, it can significantly impact the ruling on child support.
A Spousal Support Attorney Can Guide You
Instead of taking matters into your own hands, consult an experienced spousal support attorney who can guide you throughout the divorce process. They will analyze your financial situation and advise you on the best course of action. They can also help you negotiate a fair division of assets and work toward a resolution that benefits both parties.
Taking all the money out of your shared bank account has immediate legal consequences and can create long-term complications that affect your life. These are just a few reasons why you shouldn’t empty a joint bank account during a divorce. Working with a knowledgeable and compassionate spousal support attorney throughout this trying period is crucial. If you’re facing a divorce and need some guidance, contact LaCoste Family Law today to discuss your legal options and prepare for the best possible outcome.