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What Happens to a Joint Bank Account During a Divorce?

When you and your spouse get married, it’s not uncommon for many different aspects of your life to become intertwined, from sharing a last name and home to a child and credit cards. While this can make many aspects of your life easier, if you and your spouse decide to divorce, things can become more complicated. Unfortunately, many people are unsure what will happen to assets like a joint bank account when they file for divorce. If this represents your circumstances, the following blog and New Jersey property division attorneys can help you navigate these complicated matters to protect your best interests.

How Is a Joint Bank Account Handled During a Divorce?

When you and your spouse decide to get a divorce, understanding how your property will be distributed in New Jersey is critical to financially preparing for these matters. New Jersey is an equitable distribution state. This means that all property you and your spouse own together will be divided based on each spouse’s contribution to the marriage.

In some instances, property that someone may consider separate can actually be deemed marital assets if they have been commingled with jointly owned assets. For example, if you take funds out of a joint account to purchase a home in solely your name, because you used marital funds, the home would be considered joint property as well.

As such, if you have a bank account with your spouse, the courts will split it based on both your deposits and contributions to the marriage. Unlike other states, you may not receive an equal split of these assets.

It’s also important to understand that the state considers both financial and domestic contributions. This is essential for spouses who put their careers on hold to raise a family or support their partner.

What Happens if My Spouse Empties the Account Before Assets Are Split?

When you and your spouse divorce, it may be in your best interest to contact the bank and freeze the account. This will limit how much your spouse can take from the account, as the last thing you want is to find the funds drained.

If your spouse did empty the account before the assets could be split by the courts, you’ll find that they can be penalized for this. Whether they withdrew all the funds or spent the money on frivolous purchases, this can be considered marital waste. As a result, they may be ordered to reimburse you for the portion of the assets you are owed. Additionally, they can be found in contempt of court for their actions.

Going through a divorce is an incredibly complicated matter, as it encompasses emotional, legal, and financial complexities. As such, it’s in your best interest to connect with an experienced attorney from Haber Silver Russoniello & Dunn who can help guide you through these challenging matters. Our firm understands that financial planning for life after divorce can be overwhelming. Connect with us today to learn how we can help you protect your assets to make this transition easier.

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