When Separation occurs, many people think to immediately go into the joint accounts and transfer themselves their half share (or sometimes more). Before doing so, there are some important factors to take into consideration.
How will this impact the relationship between you and your ex-partner?
Will this impact any negotiations and possibility of reaching a final agreement in your matter?
Is there the possibility you will have to pay it back?
Are you in an emergency and need the money to survive?
When can you take funds from a Joint account
In emergency situations, the Court may grant an injunction order to freeze the joint accounts, which is to ensure that no one can take funds out of them. However, this is only when there is Court intervention.
It is appropriate to take money from a joint account in some circumstances, such as:
- If you have no other access to funds but your partner does
- If your partner is withholding financial support (which is a form of financial control)
- If you are or have been the homemaker and do not have a job or sufficient income to support yourself and/or your children
- If there are significant funds in the joint account, and you are worried that your partner will deliberately deplete the asset pool.
We suggest you seek family law advice prior to taking any action.
What to do:
First consider the level of conflict, the amount of funds in the joint accounts and your financial circumstances.
If it is safe to do so, you may go to the bank to place joint signatures on the account. This prevents you and your partner from withdrawing any funds without you both consenting to withdrawing the funds.
You may be able to withdraw half of the funds in the account and leave the rest for your ex-partner if you both agree to doing so.
During a property settlement, you will both be required to disclose all your financial information and provide documents. If you are not across your financials, start to obtain bank and credit card statements, details of your mortgage or rental agreement, utility bills, car registration documents and tax returns. Doing this sooner rather than later can assist you both agreeing to a financial settlement more quickly.
Open a new bank account in your sole name. If you have been using a credit card with your partner as the primary cardholder, apply for a new credit card in your own name.
If money from a joint account and is spent “recklessly” – for example, on gambling – speak to one of our Family Law Lawyers as to how this will be dealt with in relation to your property settlement. If the depletion of funds has occurred recklessly throughout the relationship, this may be treated as a “negative contribution” by that spouse.
If the money is spent on reasonable everyday living expenses such as housing, groceries, or clothing, this will likely be seen as legitimate expenditure.
If you need advice on property settlements, joint bank accounts, or any other aspect of family law, contact Scarf Family Law.
