How to manage your joint account in case of a divorce
There are several benefits to having a joint account but when relationships turn sour, things become complicated and in certain cases downright ugly if you have a vindictive partner. Hence, it is always better to know what happens to a joint account in the event of a divorce.
Your responsibilities in a joint account
Everyone who owns a joint account must realize that each party is liable to 100% of the debt and not just 50%. Hence, if your partner ever empties the coffers and you wish to close the account you can do that only when you clear all the debt incurred jointly even if you do not stay together anymore. What usually happens in most cases is that the control of a joint account invariably rests in the hand of the main breadwinner which can be disastrous for the other spouse. Despite the law stating that both parties are responsible when one party is absconding with the money, the other spouse automatically becomes responsible.
What should you do in the event of a break-up
If one of the partners is unscrupulous then the other can end up in a financial mess. Hence, it is better to inform your creditors and the bank as soon as possible of a break up so that your account can be frozen and no withdrawals can be made until both partners are present or have consented. This will not affect the pre-agreed payments and they will continue to be deducted as scheduled.
A common advice that most attorneys give their clients, especially if you are unemployed is to withdraw sufficient money to cover your basic needs before filing for a divorce because once you file a case your account will be frozen and you will not be able to withdraw any cash even to meet your daily expenses.
How your finances are divided will depend on the laws of the state you live in. but whatever the case do not remove more than 50% of the funds from the account. Based on the individual case you might be asked to even return the withdrawn funds.
How to safeguard yourself
You can open a new separate account by informing the court and your spouse about it to prevent any misunderstanding and legal complications via financial declaration. This will ensure that all your paychecks reach your account and away from the spousal reach. In case you need extra income during these stressful times you can invest in an automated trading robot like Ethereum Code which is known to provide decent returns.
Remember tough times never last but tough people do.