It is important at the beginning of a separation or divorce to ensure that your assets are protected. Here we look at the law in relation to joint and sole bank accounts and what you can do if they are emptied.
It is important at the beginning of a separation or divorce to ensure that your assets are protected. Here we look at the law in relation to joint and sole bank accounts and what you can do if they are emptied.
If you have need help with your divorce and you feel you need legal advice, contact specialist family solicitor Mark Heptinstall of Slater Heelis Solicitors. He is recognised as a ‘Leading Individual’ in The Legal 500 and ranked in Chambers UK, and is described as having “the amazing ability to bring calm into troubled waters”.
Joint Bank Accounts
The starting point for joint bank accounts is that both parties have an equal right to the funds in the account. This does not mean you can each have 50% of the pot, but extends to the whole of the funds in the account. Either party is therefore legally entitled to empty the account, regardless of who deposited the funds and the bank or building society does not have to provide any relief to the party losing them.
That said, the money taken by your spouse is still considered a matrimonial asset, and if it has been squandered, the court can even add it back into the figures. Although you must prove your ex has wantonly dissipated the funds (spent on fripperies and non-essentials). If the money has merely been transferred into a bank account in your ex’s sole name, the money is simply included in the matrimonial post for financial distribution, as if it had never been transferred.
Single Bank Accounts
Sometimes you may allow a partner to use your bank account, but if you separate or change your mind, are those funds protected?
Often, personal savings have been built up during the marriage, thereby classing them as a matrimonial asset, even if they are held in your sole named account. This means that it will be considered as part of a financial settlement during a divorce. However, this does not mean that your ex can use your online banking details to access your account and transfer money into their own named account. If this happens, it is likely to be considered a criminal offence, and you should contact the police and report the matter. You should also change your log on details and report the matter to your bank. If money has been removed from an account without permission, then your bank should replace the sum lost.
Can I take any emergency action?
Some situations may require a freezing injunction, although these are notoriously difficult to obtain. This is because there are so many factors that an applicant needs to satisfy before the court makes the order. These are:
- The course of action is justifiable in all the circumstances of the case
- You have a good arguable case
- There is a real risk that the assets would be dissipated such that it would defeat a claim for financial settlement
- Making the order is just and convenient
What steps can I take to protect my assets?
When you take those first steps into regularising your separation or make the application for divorce, you should also consider how best to limit any future liability.
- If you have a joint bank account, you should set it to require a joint signature, where no one person can withdraw any funds without first obtaining the other’s written consent (some banks do not offer this service so you would need to check this). You should also think about getting your bank or building society to freeze your account. This renders the account unusable by either party and ensures no monies are removed until you have reached a financial settlement. The decision to freeze the account should be balanced against the impact it may have on direct debits leaving the account and the family bills being met, as they will also be frozen.
- If you have a separate bank account from your ex, then you should change your passwords and log-in details to prevent your ex from withdrawing any funds.
Find The Best Divorce & Family Lawyers Near You
We independently review and list the top divorce lawyers and family solicitors in the towns and cities near you. 100% free.
The information on this website is to be considered a guide and is therefore not legal advice. You use this information with the understanding that Wiselaw does not accept liability for any direct or indirect losses as a result of anyone relying on or acting upon the information on this website. Whilst we endeavour to provide accurate information, Wiselaw does not accept liability for any errors or omissions on this website.
