What to Do When a Spouse Empties Joint Bank Accounts

Divorce is a challenging process, and financial matters can quickly become contentious. One particularly sensitive issue is the handling of joint bank accounts. If you're going through a divorce in Washington state, it's crucial to understand your rights and responsibilities regarding shared finances.

Each Party’s Right to Money in Joint Bank Accounts

In Washington state, the concept of community property plays a significant role in divorce proceedings. As a community property state, Washington considers most assets acquired during the marriage to be jointly owned by both spouses, regardless of whose name is on the account or who earned the money.

Joint bank accounts fall squarely into this category. Money deposited into these accounts during the marriage is typically considered community property and is subject to division during divorce. This means that, in principle, both spouses have an equal right to the funds in joint accounts.

Can You Close or Withdraw Money from a Joint Account Before Divorce?

While it's generally not advisable to make significant financial changes without consulting your attorney, there are some instances where withdrawing money from a joint account or even closing it might be acceptable. However, proceed with caution and keep these guidelines in mind:

1. Partial withdrawals: Taking some funds is usually acceptable if you need to withdraw money for legitimate expenses. However, be sure to:
   • Only withdraw a portion of the money, not the entire balance.
   • Document how the withdrawn funds are used.
   • Ensure the money isn't being hidden or used for non-essential purposes.
2. Closing accounts: Sometimes, you may have valid reasons for wanting to close a joint account. If you choose to do this:
   • Be prepared to prove that your reasons for closing the account are legitimate.
   • Document that you haven't hidden or misused the funds.
   • Consider transferring the money to a separate account in your name, but consult your attorney before spending it.

Remember, transparency is key. Any financial moves you make during this time will be scrutinized during the divorce proceedings. Always act in good faith and be prepared to justify your actions.

Can You Stop Sending Direct Deposit Payments to a Joint Account?

If you're concerned about your spouse misusing funds from a joint account, you may consider redirecting your direct deposit payments. Here's what you need to know:

Date of separation: Ensure that any changes to your direct deposit occur after your official date of separation. This date is crucial in determining which assets are considered community property.

Keep detailed records: Document when you stopped sending payments to the joint account and where the funds are being deposited instead.

Consult your attorney: Before making any changes to your financial arrangements, consult your divorce attorney to ensure you are not inadvertently violating any laws or court orders.

Be prepared to account for the funds: Even if you deposit your income into a separate account, if earned during the marriage, these funds may still be considered community property.

What to Do If Your Joint Account Is Emptied Before or During Divorce

Discovering that your spouse has emptied a joint account can be alarming. If you find yourself in this situation, take the following steps:

1. Contact your attorney immediately: Your lawyer can advise you on the best course of action and may file an emergency motion with the court if necessary.
2. Gather evidence: Collect bank statements, withdrawal receipts, and any other documentation showing the account activity.
3. Document the timing: Note when the withdrawal occurred in relation to the date of your separation or divorce filing.
4. Secure remaining assets: If you have access to other joint accounts or assets, consider taking steps to protect them (in consultation with your attorney).
5. Request an accounting: Through your attorney, you can request that your spouse provide a full accounting of how the withdrawn funds were used.
6. Consider mediation: If communication with your spouse is still possible, mediation might help resolve the issue without court intervention.
7. Prepare for court: If other methods fail, be ready to present your case to a judge and show how your spouse's actions have unfairly disadvantaged you.

There Are Consequences for Emptying a Joint Account

Courts take a dim view of spouses who attempt to hide or misuse community property. If your spouse has emptied a joint account without justification, they may face several consequences:

Replacement of funds: The judge may order your spouse to return the money to the account, even if it has been spent or invested elsewhere. This could include covering any withdrawal penalties or fees incurred.

Alimony adjustments: The court might order your spouse to repay the funds through increased alimony payments, providing you with a steady income stream.

Payment of court costs: Your spouse could be held responsible for covering your legal expenses, including attorney fees, court filing costs, and fees for any necessary financial investigators or forensic accountants.

Uneven asset division: The judge may compensate for the withdrawn funds by awarding you a larger share of other marital assets.

Contempt of court: If your spouse violated a court order by emptying the account, they could be held in contempt and potentially face fines or other penalties.

The goal of the court is to ensure a fair division of assets. If one spouse attempts to circumvent this process by emptying joint accounts, the legal system has mechanisms in place to address these actions and protect the interests of both parties.

Discuss Asset Division with an Attorney

Individuals going through a divorce – or considering divorce – should consult an attorney to understand their rights and learn how to protect their interests during the process. The attorneys at McKinley Irvin can help achieve a fair division of assets and property during divorce. Contact us for more information.