Divorce and Your Bank Account: What Every Man Should Know Before Filing

Dealing with finances is often the most difficult aspect of divorce. What were once joint accounts with your wife can very rapidly become a source of serious conflict. The money that was for everyone in the family suddenly seems to be something you’re arguing over, down to the very last amount. 

If you’re a man preparing for a divorce, you absolutely need to have a good strategy. This explanation will take you through how divorce affects your bank accounts, what steps to take right now, and the errors that could end up being very expensive. The basic aim is to help you remain as calm as possible, do everything by the book, and look after what you’ll need later on.

Why Your Bank Accounts Matter So Much in a Divorce

Your bank account isn’t just a list of figures, it’s a record of your life with your partner, what you both bought, and where you put your money. When you get divorced, your attorney, your spouse’s attorney, and the judge will examine all accounts in your name. 

This includes your checking, savings, money market accounts, and even any ones you’d completely forgotten about. Fortunately, men who get themselves sorted out at the start of the process almost always fare better than those who become anxious. Being properly prepared for divorce starts with a clear understanding of the balance of each account and how the law treats it.

Joint Bank Accounts and What Really Happens

You and your wife share a joint bank account, with both your names on it, and you both have the ability to withdraw funds. You’re both considered to have the same amount of control.

Both Names, Equal Rights

In nearly all states, each of you can get money from the joint account whenever you want, and the bank won’t ask the other one for approval. This is a really important point to think about at this time, and how and when you do things.

These Accounts Are Usually Marital Property

Money in a joint account is very likely to be considered something you both own in divorce proceedings. So it belongs to the two of you, regardless of who actually made the money, and even if your salary is the sole source of funds, your wife could legally be entitled to a portion. 

Can the Account Be Frozen?

However, it won’t be frozen automatically. A bank won’t simply block access to your joint account because of a divorce filing. Generally you’ll need a court order or a signed agreement to make that happen. If you’re concerned your wife might take all the money, you really should discuss this with a lawyer who deals with divorce before you do anything yourself.

What About a Separate Bank Account?

An account that’s just in your name is a separate bank account. Lots of husbands assume anything in it is completely their money. That’s sometimes the case, but not as often as you might think.

When the Money Truly Stays Yours

Money you had before you got married can remain yours, but you have to be sure to keep it as yours. Only your name should be on the account, your wife shouldn’t deposit her earnings into it, and you shouldn’t use it for family expenses such as the house payment or food. 

Presents and money from a will can also be kept separate. The important thing is not to mix them with money you and your wife share. Once they get combined with marital funds, they generally aren’t considered yours alone anymore.

How Mixing Money Can Hurt You

When lawyers talk about “commingling”, they mean combining your own money with money you have with your spouse. If you do this, the court might consider all of the money in that account to be property you both own. A lot of husbands do this without realizing it.

So for instance, if you regularly put your earnings into an account you think of as being just yours while you’re married, a judge could decide that money is for both of you. A single movement of funds between accounts, even just one, is enough to change a neatly separated account into one that’s all mixed up.

Should You Open a New Bank Account Before Divorce?

Guys ask this question all the time and the quick answer is yes, you can do it, but you’ve got to do it correctly. Starting a fresh account offers security, being in charge of your money, and a clear way of following where it goes. But if it isn’t handled properly, it could hurt your divorce situation. 

Why It Can Help You

When you open a bank account that is just in your name, your wages will go somewhere only you have access to. This provides you with money for essentials like rent, food, gasoline and things like that, should things get difficult quickly. It also allows you to have your finances be separate from your spouse’s, and do it legally.

Rules to Follow

You absolutely must be truthful, and tell your lawyer about the account before you open it. Don’t transfer a lot of money from accounts you share with your spouse into this new one. And you need to have a record of every time money is added or taken out. Judges will carefully examine any financial changes you make right before you file for divorce, so being open and honest is best for you.

Big Mistakes That Can Hurt You

Lots of people when they get scared do things that don’t seem like a big deal at the time, but they’ll get into trouble with them later. These decisions can really hurt your divorce and could even get you into legal difficulty, so avoid them.

Do Not Empty the Joint Account

Taking all the money from a bank account you have with your spouse before you get divorced might feel like protecting yourself. But it isn’t. Courts think of that as being dishonest, and a judge can order you to return the funds. Losing the judge’s confidence is also a problem, and that negatively affects everything else in your divorce. 

“Emptying the bank account before divorce” is a very common search term because so many people later regret having done it. If you absolutely have to remove some of the money, only take what you are legally entitled to, carefully document the amount, and be sure to inform your attorney immediately.

Do Not Hide Money

Trying to conceal money by stashing it somewhere, creating accounts that aren’t on the record, or giving it to a friend to hold for you…well, it’s very rarely successful. These days, pretty much any movement of money will be recorded electronically. And if a court discovers what you’ve done, you’re likely to be penalized for a lot more than just the original amount. You might also be required to pay penalties or be accused of being in contempt of court.

Do Not Make Big Purchases Right Before Filing

If you’ve recently purchased a new truck, loaned a significant amount of money to relatives, or moved large sums of money around, it will likely look questionable. Even if you have a perfectly good explanation, these things can cause problems during your divorce. So if you aren’t sure about something, either delay it or talk to your attorney beforehand. 

Smart Steps to Protect Your Money

Calm preparation beats angry reaction every time. Here is how to handle this stage with a steady head.

Gather Your Bank Statements

Get at least a year’s worth of bank statements for all accounts in your name and for any accounts you share with your spouse. Then, importantly, make sure to save these as digital files on a private storage space your wife can’t get into. Your attorney will use these financial documents to develop a solid defense and prevent false statements. 

Track Income and Spending

Just create a straightforward accounting of your household finances: what money comes into the house monthly, what money leaves, and where it is spent. This is one of the most valuable things you can do when preparing for a divorce and it’s free.

Talk to a Divorce Attorney Early

Lots of guys put off getting advice for too long, but a phone call to a divorce lawyer before you do anything with your finances could literally save you thousands of dollars down the road. A good one will explain what’s okay to do and what might cause trouble, all before it becomes an issue with the court. 

Keep the Money Status Quo

Until your case is filed and rules are set, try to keep paying the same bills the same way. Do not stop the mortgage. Do not cancel her card without warning. Do not change direct deposits in secret. Sudden changes look bad and can be used against you. The court wants to see that you acted fairly while the case was pending.

Bank Accounts After the Divorce Is Final

While your divorce isn’t happening yet and no rules have been decided, continue paying your bills as usual. Don’t let the mortgage fall behind, don’t cancel your wife’s credit card without telling her, and don’t secretly alter direct deposits. Big, quick changes look suspicious and she could use them against you. The court is looking for you to have been reasonable during the divorce process. 

This is your fresh start. Set it up the right way so the past does not follow you into your new life.

Final Thoughts

Getting a divorce is much more connected to your finances than most guys think. In fact, anything you do with your money right now, be it taking some out, moving it around, or opening something new, will probably affect how things go for your finances for a long time to come. And the guys who get through this period with the best results aren’t the ones shouting or being the most furious; they’re the ones who are best at being ready for it. 

Remaining collected is important. You should maintain a careful filing of everything financial, and get really solid guidance from someone who knows, as soon as you can. Shield your money by being clever about what you do, rather than taking big risks. Doing it this way means you’ll finish the divorce with control over what happens next.