You and your spouse may possess a joint bank account. Although some relationships remain stable for long periods of time, it is always possible for a marriage to end. Typically, one spouse seeks a divorce and begins taking legal action to end the marriage. After dealing with the emotional and psychological effects related to divorce, it is possible that you will consider what happens to the contents of your joint bank account. You may also begin to plan how you can take out the funds which are already in the bank account you share with your spouse
Before you take any drastic action you should determine the legal consequences of removing the funds in a joint bank account. A knowledgeable family lawyer in Texas will provide you with the legal advice you need to make the best decision regarding your legal rights.
Divorce affects every person differently, and it can soon become difficult to see your life after separating from your spouse. However, it is best to take small steps toward distancing yourself physically, emotionally, and financially from your partner.
Learning how to enforce your legal rights in an efficient manner will enable you to benefit over the long-term. If you act in a rash and thoughtless manner then you may suffer consequences which could cause you to suffer both in your professional life and in your personal life.
The Legality of Draining Joint Bank Accounts in Divorce
One day you are happily married, and the next thing you know your spouse begins speaking to you about getting a divorce. You may think to yourself, “Is it legal for me to withdraw the funds from a joint bank account I hold with my spouse?” You should speak to a licensed family law attorney in Texas before you take any actions regarding the financial asset you share with your spouse. If you empty a joint bank account you may suffer legal consequences which can impair your rights over a long period of time.
Understanding Automatic Financial Restraining Orders
Family law attorneys will generally advise their clients to leave shared assets alone during divorce proceedings. Automatic financial restraining orders are often enforced to prevent the parties from damaging the interest the spouse has in shared property. If you do not know if an automatic financial restraining order will be applicable to your divorce, then you should consult an experienced Texas divorce lawyer as soon as possible.
Nearly two-thirds of family law attorneys in Texas have witnessed divorce cases involving one party who has emptied the contents of a joint bank account. Taking action before speaking to a divorce lawyer can damage your chances of keeping half of all the financial assets you hold in conjunction with your spouse.
Consequences Enforced by the Court
Some individuals believe they can remove the funds from a joint bank account and convert them into securities. However, the proceeds of the money may be liquidated and converted into cash so the contents of the joint bank account may be equitably distributed. Taking community property without the consent of the other party may cause you to become more financially insecure in the future if you have to defend a civil lawsuit.
A party may not wish to remove the funds, but they panic and empty the joint bank account without thinking about the consequences of their actions. One spouse should distribute joint bank accounts in a reasonable manner, not empty them suddenly because they feel rejected or betrayed.
Key Takeaway:
Do not remove any funds from a joint bank account before you speak to a knowledgeable family law attorney in the State of Texas.
Impact on Asset Division and Marital Property
Shifts in Property Distribution Due to Depleted Funds
It may occur to you that you can benefit from taking all the funds out of your personal bank account before the divorce is finalized. Judges do not appreciate individuals who attempt to circumvent the law. The legal system is going to ensure that your funds are accounted for, and this is especially so if you are ordered to pay alimony, child support, or restitution. Judges may alter property division during divorce proceedings if one party has acted in an irresponsible manner with joint bank accounts or personal bank accounts.
It is possible that your share of the community property may be reduced according to how much you withdrew before the divorce was finalized. When you are dealing with legal separation and other family law matters it is necessary that you consider the long-term effects of your actions. One or two years after you empty a joint bank account you may be surprised to learn that you are not entitled to any share of the marital funds.
Marital vs. Separate Property Considerations
Determining if an item of property is marital property or separate property may be confusing. The spouses may pool all their assets together, and when this occurs the property is termed “community property,” and each spouse is entitled to one-half of the community property.
Separate property is distinct from community property, but it is possible for community property to become separate property through a process called transmutation. For example, you may receive an inheritance of $25,000 from your aunt, and this is separate property, but once you place it in a joint bank account and commingle the funds with community property, then the entire inheritance may be categorized as community property.
It is essential that you refrain from acting in an irrational manner during divorce proceedings. Do not use your emotions when you are making decisions. If you want to reduce your anxiety then engage in exercise or meditation. Also, It is imperative that you do not post any confidential information regarding your ex-spouse during the divorce proceedings.
If you do not act in a reasonable and cautious manner while you are determining what to do with jointly held property, then you may suffer various consequences. It is possible that you will lose your right to your property and that you will be denied access to the financial resources you believe belong to you.
Key Takeaway:
Do not remove any funds from a joint bank account before the divorce proceedings are complete. The judge may award your spouse with a larger portion of the community property resources if you acted in bad faith.
A prenuptial agreement may affect the rights you have to your financial assets. It is vital that you seek out the legal advice of a knowledgeable family law attorney if you want to understand how you can protect your assets both during and after marriage.
Being cautious and strategic during the stages of the divorce process can help you protect your financial asset and your family members. You do not have to spend all of your time thinking about how you can prevent your ex-spouse from getting their share of the community property assets.
Protecting Your Financial Interests During Divorce
Financial security is a valuable thing in and of itself. Divorce can make some parties feel insecure and frustrated as they attempt to live on their own. If you depended on your spouse to handle all the financial matters in the home, then you need to educate yourself on the things you can do during a divorce to protect your financial assets and your legal rights.
Establishing Separate Bank Accounts Responsibly
Many parties will create separate bank accounts once divorce proceedings are initiated by one of the marriage partners. The timing of this task is critical for both spouses. If you suspect your partner will be seeking a divorce, then you need to be open and transparent about any separate account you open while the divorce is pending.
You need to also ensure that automatic payments are redirected to your separate account. Remember those scheduled withdrawals or pending payments? You need to organize your financial assets and liabilities so you have a clear understanding of the payments and deductions which will affect your account balance.
Avoiding Accusations of Hidden Assets
You do not want to withdraw the entire contents of a joint account while the divorce is ongoing. The legal and financial consequences of this behavior may affect you for the rest of your life. It is a good idea to speak to an experienced divorce law attorney who can help you determine how to handle a joint bank account.
To avoid such drama—and accusations that could paint you as financially unfaithful—document every financial transaction. Hiding assets or sequestering money in different accounts may cause you to suffer problems at a later date when the judge admonishes you for attempting to keep assets for yourself.
Child custody payments are also an important factor in divorce proceedings in Texas. You cannot assume the court will be fair and equitable as it calculates child custody payments. It is essential that you focus on what you can do to protect your legal interests early on during the case.
Divorce can be an overwhelming experience. If your emotions may lead you to act against your own interests, seek guidance from a competent divorce attorney to help protect your legal rights.
Key Takeaway:
Be quick to open a separate bank account early on during divorce process. Be open and transparent about your creation of the separate bank account. Do not be frightened of the confusion and helplessness that some parties may feel when they are going through a divorce.
Navigating Child Custody and Support with Financial Integrity
Ensuring Fairness in Child Support Payments
Child support is one of the most important aspects in the entire field of family law. The contents of your bank account may influence the total amount you must pay in child support payments. Do not empty your bank account to preserve your money. You need to focus on the things you can do which will give you the best chance of paying a fair amount of child support.
Courts want to balance the interests of the parties and reach a reasonable conclusion regarding the assets which should be available to children so they can thrive in any environment.
Keeping your children in mind will inform that court that you are interested in providing for your family members. You do not have to succumb to anger or frustration during the divorce proceedings. It is possible for you to care for your children and still pay a reasonable amount in child support payments.
Financial Considerations in Custody Agreements
Responsible financial management will help the court view you as a dependable parent who can provide a positive environment for your children. You should not make large purchases or empty your bank account during divorce proceedings.
If you open a separate bank account you should use it in a reasonable and appropriate manner. You do not have to stop buying commodities, but you should keep in mind that your spending habits will be relevant to the court’s determination. If you want to have a good chance of not paying too much in child support, you should be frugal while the divorce is pending.
Preemptive Measures with Prenuptial Agreements and Financial Records
Prenuptial agreements provide you and your partner with a clear understanding of which assets are yours and which belong to your spouse. A prenuptial agreement may not be the most romantic part of a marriage, but they can provide you with the peace of mind needed to move forward. The creators can determine the parameters of a prenuptial agreement as broad or narrow, depending on its purpose.
Strategic Planning with Prenups
A prenuptial agreement can provide you and your spouse with a roadmap for your financial future together. Clear guidelines can be created to categorize which assets are marital assets and which assets are separate property. In this manner, you can devote yourself to expanding your business and growing your personal assets. Your spouse will then feel more confident in the nature of the prenuptial agreement.
It is common for prenuptial agreements to govern how the parties can interact with joint accounts during the course of the marriage. Each party should have responsibilities regarding the maintenance of joint bank accounts. By signing a prenuptial agreement, you can further protect yourself by ensuring that no party will have complete control over a joint account.
The Powerhouse Duo: Prenups and Financial Documentation
Your bank statement and other documents will provide you with the financial freedom you need to make the best decisions in your life. Keeping meticulous records will inform the court that you are a responsible person who does not act in an irresponsible manner.
The more stable you appear to be, the more likely it is that you will be able to have a positive outcome in your divorce case. A judge will be more likely to award you joint custody if you have a savings account and a reliable daycare center or babysitter to use when you are away from home while working. These factors can strengthen your case.
Key Takeaway:
Focus on being responsible, stable, and mature. Do not waste your funds or attempt to get back at your spouse. The best thing you can do is keep track of the most important things regarding your home.
Conclusion
It is risky to take the funds out of any joint bank accounts held by you and your partner. Do not touch these accounts once divorce proceedings begin. It is necessary for you to get your financial life organized so you put your best foot forward when you present arguments to the court.
Focusing on how you can make a good impression on the judge will benefit every aspect of your case. Being prepared and resilient will allow you and your family lawyer to enforce your legal rights and reduce your payment amounts most effectively.
Call our divorce law office at (888) 584-9614 or contact us online to schedule your consultation with the best divorce attorney in town.
