Dividing finances during a divorce presents challenges that affect daily living and long-term financial health. While state laws may influence some decisions, taking proactive measures protects personal assets, clarifies financial obligations, and establishes independence. If you are facing this situation, we can answer all of your questions in detail.
Should I Open a New Bank Account?
We recommend it, and only in your name. Many spouses open a new personal checking or savings account as soon as the divorce process begins. That creates a clear distinction between marital funds and individual earnings or deposits made after separation. New accounts also reduce confusion over which funds are considered joint property and which are not.
It is important to understand local court rules before moving any large amounts of money. Still, opening a new account and having future paychecks deposited there is generally allowed and advisable.
What Happens to Joint Bank Accounts?
Joint accounts often remain a point of contention during a divorce. Depending on state law, funds in joint accounts may be considered marital property and subject to equitable distribution. In some cases, courts may freeze joint accounts or allow each party to withdraw a portion until final decisions are made.
If there is concern about one party draining the account, it may be appropriate to request a court order limiting withdrawals or closing the account entirely. Until then, both parties typically retain access unless a judge rules otherwise. Communication between the parties or through legal counsel is often necessary to manage shared funds during the proceedings.
Can I Move All the Money Out of Our Joint Account?
Doing that may lead to legal consequences; courts generally disapprove of unilateral actions that appear to be attempts to deprive the other party of their share. In some cases, judges may order the return of funds or consider such conduct when determining the division of assets.
A better approach may be to withdraw a reasonable amount to cover personal expenses, especially if shared accounts are the only source of available funds. Documenting withdrawals and keeping receipts may help demonstrate that the money was used responsibly and not for the purpose of concealing assets.
How Should I Handle Automatic Payments and Direct Deposits?
Adjusting automatic payments and income deposits should be handled early in the process. Identifying which payments to redirect can help avoid missed deadlines and overdrafts.
Changing direct deposit arrangements with employers can also help prevent income from flowing into joint accounts. It is typically advisable to establish a new account and provide updated information to payroll departments as soon as possible. That helps build financial independence and may reduce the risk of disputes over post-separation income.
Can I Be Held Responsible for My Spouse’s Debts During the Divorce?
Responsibility for debts often depends on whether the debt is considered marital or separate. Joint debts, such as a shared credit card or co-signed loan, typically remain the responsibility of both parties until the account is closed or paid off. In some cases, a court may assign the debt to one party, but creditors may still attempt to collect from both individuals if the original agreement was joint.
Creating a list of all debts and reviewing account statements can clarify which obligations are shared and which are not. It may also be helpful to stop using joint credit accounts and to begin applying for new lines of credit in one’s own name.
A Toms River Divorce Lawyer at Zeigler Law Group, LLC Can Protect Your Financial Interests
If you are preparing to divorce, contact a Toms River divorce lawyer at Zeigler Law Group, LLC. For a free consultation, submit our online form or call 732-361-4827. Located in Toms River, Red Bank, Princeton, and Mount Laurel, New Jersey, we serve clients in Ocean County, Monmouth County, Mercer County, and Burlington County.