A common dilemma separating couples face after separation or divorce is whether they should withdraw funds held in a joint bank account. From the moment you separate to the point the Court seals your Consent Orders, money can be challenging to come by, particularly in circumstances whereby you may have been the primary caregiver to children and relied on your former spouse for income.
Withdrawing funds from the joint bank account may appear to be a reasonable action to take. However, if there is no justifiable reason to do so, it can be detrimental to the trust and goodwill between you and your former spouse. This may complicate matters and make your property division more challenging to resolve.
Many separating couples assume they are entitled to half of the funds held in the joint accounts. As such, they believe they have the right to withdraw funds at any time after separation. Whilst it is not a criminal offence to withdraw funds from a joint bank account after separation, it may not always be a good idea to do so.
If you have company accounts, you should speak to a family law expert and an Accountant in case there are tax implications.
There may be circumstances where you need to consider withdrawing funds from your joint bank account, such as:-
- You do not have an income or financial support, and you have relied on your former spouse for financial support.
- You are the primary carer for the children, and you have no other way to support your children financially.
- You are concerned that your former spouse may withdraw funds to diminish the property pool and impact your entitlements in a property division.
If one party can demonstrate that they require the funds to meet their daily living expenses to survive, your property settlement may progress more smoothly.
If you are concerned about any of the above, here are some things to think about:-
- When there is a concern that a former spouse may drain the joint bank account, you should ensure that you have two signatures on the joint bank account. Having a requirement on the account for joint signatures will prevent either person from withdrawing funds until the property division has been finalised through your collaborative family lawyer, by Court Order or by the consent of both parties. Ensuring a joint signature requirement for withdrawing any funds from the joint bank account is the most effective way to avoid funds being drained from a joint bank account. Having said that, a requirement for joint signatures may be unnecessary if you and your separating spouse are amicable and committed to resolving your property matter amicably.
- You could consider withdrawing half the funds and leaving the other half in your bank account for your former spouse.
You will be able to reach the best outcome if you and your former spouse can talk openly regarding how assets should be divided.
Every separating couple's circumstances are different, so it is important to obtain legal advice before withdrawing funds from the joint bank account.
Our team of expert Collaborative Family Law Solicitors have years of experience helping separating couples move forward peacefully and protected.
If you need to speak to an expert Family Law Solicitor who can offer fixed fee solutions to your legal needs, contact Grace Family and Collaborative Law today.
Call or email us today 1300 414 855 tarryn@gfclaw.com.au