Property division is one of the most important stages of the divorce process. The goal is to divide the assets equitably between the two spouses, which may not always work out to a 50-50 split. But when one spouse seizes assets for themselves, the situation gets complicated.
Bank Accounts and Divorces
In a divorce, bank accounts may be considered either separate or marital property. The distinction is important because it determines who can legally access the bank account’s funds.
Marital Bank Accounts
Marital bank accounts are those that are opened during the marriage. In most cases, the money deposited in them during the marriage belongs to both spouses. When the division of property occurs, the money in these accounts is divided fairly among the spouses.
Separate Bank Accounts
Sometimes, one or both spouses bring a bank account into the marriage. Generally speaking, these accounts aren’t marital property and thus belong solely to each respective spouse.
However, separate bank accounts may be designated marital property in certain situations. For example, if a spouse uses a pre-marriage savings account to deposit wages earned during the marriage, those wages will be subject to division.
When One Spouse Empties Bank Accounts
There are no real repercussions when a spouse empties a bank account of proceeds that are solely theirs — the money belongs to them by right and therefore isn’t subject to division in the divorce proceedings.
Unfortunately, it’s not uncommon for spouses to empty marital bank accounts leading up to or during a divorce.
The key term here is “leading up to.” Emptying an account years before a divorce is not a punishable offense, but doing so within a reasonable timeframe of a divorce can lead to consequences for the spouse making the withdrawal.
The Court Will Know
During a divorce, both parties must paint a complete picture of their assets, including their bank accounts. The court will review bank statements and note all deposits and withdrawals to get an accurate accounting of dubious financial activity.
There Will Be Financial Consequences
The spouse who withdrew the money will likely face penalties, fines, and court costs when discovered, especially if the withdrawal was made to harm the other spouse or in direct disobedience of the court.
Protecting Your Accounts
If you’re contemplating or going through a divorce, there are ways to protect your money from a spouse’s withdrawals. You’ll first want to become financially independent from your spouse and establish your financial accounts in your name alone.
Once you’ve done that, you’ll want to remove your name from any account associated with your spouse. Otherwise, they may go on a spending spree and could quickly rack up marital credit card debt, putting you on the hook for half of the bill.
Effective Representation in Your Divorce
Gucciardo Family Law is ready to help you deal with the problems that can arise during a divorce, including drained bank accounts. Call our office today to speak with a compassionate divorce lawyer who knows how to fight for your rights.
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FAQs
A spouse who empties half of their bank account is not committing any legal actions. For this reason, a spouse cannot do anything, so long as that bank account is a shared bank account.
Can a husband withhold money from wife? ›
Withholding access to marital funds without cause may constitute financial abuse. This can be considered illegal, especially when used for control or punishment.
Can your wife freeze your bank account at the time of divorce? ›
The court has the power to freeze your bank accounts and other marital assets when you're in the middle of a divorce. We're not just talking about the house, cars, and furniture. Marital assets can include insurance policies, bank accounts, inheritances, and more.
What is a red flag that a spouse is hiding assets? ›
It should be a red flag if your spouse takes complete control of the finances or changes the passwords, so you cannot get into your accounts. If your bank statements are mailed to you, you may suddenly stop receiving them if your spouse changes your mailing address with the bank without your knowledge.
How can I prove my husband is hiding money? ›
Bank account statements: These statements will provide valuable information about your spouse's income, regular expenses, and whether unusual deposits or withdrawals were made. Bank statements will also show whether a large sum of money was used to purchase real estate or other assets in your spouse's name only.
What is it called when a spouse withholds money? ›
Financial abuse is a way of controlling a person by making her economically dependent or exploiting her resources. Forms of financial abuse may be subtle or overt in marriage.
Does my husband have to pay the bills until we are divorced? ›
During the divorce proceedings, the couple is still legally married, and as such, they may need to continue contributing to household expenses and bills to maintain their shared living situation. This can include costs related to housing, utilities, groceries, and other day-to-day living expenses.
Can my wife empty my bank account? ›
Many married couples have joint bank accounts. Each spouse has the right to make deposits into the account, and, each spouse has the right to withdraw from the account any amount up to the total balance.
How do I protect my bank account in a divorce? ›
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In short, whether a spouse can (or should) empty a bank account before a divorce depends on many factors, one of which is whether the funds are clearly your separate, non-marital property, and whether the spouse can prove that in court.
There are several methods to find hidden bank accounts, such as:
- Conducting online asset searches.
- Hiring a private investigator.
- Making legal requests for financial information.
- Utilizing state-sponsored websites and resources.
One potential reason your husband isn't showing you his bank account is that he has something to hide. If he's very resistant, it may be that he doesn't want to show you something he's purchased. Maybe because he's spending money irresponsibly, or perhaps he's hiding past financial secrets from you.
What can I do if my husband doesn't give me money? ›
If your partner says their money is their own and they don't want to share it with you, then it's essential to have a conversation. If they're not willing to compromise, it may be time to seek help from a professional who can help you figure out a financial plan that both people agree to.
How do people hide money before a divorce? ›
One way that spouses without businesses may attempt to hide assets is through setting up trusts or “gifting” money to someone who will return it after the divorce is finalized. Spouses that hide assets will often involve family members or friends in the process.
How can I find out if my wife has a secret bank account? ›
Check financial records.
Look through bank statements, credit card bills, and other financial records to see if there are any unusual transactions or accounts that you don't recognize. Pay attention to large withdrawals, cash advances, or purchases that seem out of the ordinary.
Can you have a secret bank account that wife does know about in a divorce case? ›
Legally speaking, there is nothing wrong with having a separate bank account. You aren't required to keep joint accounts or file joint tax returns. You aren't even required to legally tell your spouse about your secret account, that is, until divorce proceedings start.
Can a spouse withdraw money without permission? ›
When a married couple opens a joint account together, they both have equal access to funds without each other's consent. Regular bank accounts, on the other hand, are owned by one person who has complete control over the account. Only the account holder can authorize transactions to and from that account.
Do I have a right to my husbands money? ›
California is a community property state, which means that following the death of a spouse, the surviving spouse will have entitlement to one-half of the community property (i.e., property that was acquired over the course of the marriage, regardless of which spouse acquired it).
Is your wife entitled to your money? ›
In California, a wife is entitled to half of the marital assets and up to 40% of her spouse's income for child support, spousal support, and other terms of the divorce settlement. If you are going through a divorce, it is important to explore the entitlements a wife has and how the final settlements are determined.
Is it stealing if I take money from my husband? ›
Just to be clear, if certain property is in both names, then each spouse has an equal right to all of the money, so there can't be a theft in that situation.
