Your Spouse Emptied Your Joint Bank Account During Divorce—Now What?

Everyone who goes through this finds out about it differently. Maybe you checked your online banking app, only to see a balance of zero. Or perhaps you tried to pay for groceries and your card was declined. Regardless of how you discover that your soon-to-be-ex drained your bank account, we understand the pain and anxiety that comes with it. With the help of a divorce attorney in California, you can work on getting your financial footing back.

The divorce lawyers at the Law Office of Taylor B. Warner, APLC have helped people like you work through complex divorce problems in California. As a California Bar Certified Family Law Specialist, attorney Taylor B. Warner is focused on helping clients work through this painful and challenging time so they can thrive in the next stage of life. Schedule your consultation now by calling our family law firm in Rancho Cucamonga at 909-466-5575.

Why Joint Accounts Are At Risk During Divorce

Joint bank accounts are designed to give both parties full, unfettered access to the funds. This works great when you’re married and on the same page, but it’s very easy to abuse when divorce is on the table and one party is feeling vengeful.

Banks won’t intervene if one spouse removes funds, even if divorce proceedings are ongoing. The bank’s role is to honor the account agreement, and unfortunately, that means that either party can drain funds as they choose.

Note, though, that there is a difference between something being permitted under your bank account rules and something being allowed under California family law. If your spouse does this, it is very likely to come back and cause issues for them during your divorce.

California’s Rules Regarding Shared Accounts

California is a community property state, so assets and income acquired during the marriage belong to both parties. This includes money in joint bank accounts and even funds deposited into separate accounts during the marriage. A fair divorce agreement requires full disclosure of assets and debts, and parties are expected to preserve assets instead of transferring, hiding, or selling them.

California protects divorcing couples with Automatic Temporary Restraining Orders that go into effect as soon as a divorce or legal separation is filed. The restraining order requires both parties to freeze assets, prohibiting the transfer of property, changing insurance beneficiaries, and removing children from the state without permission.

If your spouse transfers funds after the ATRO is in place, they could be in violation of the order.

What Courts Do When Money Disappears

When one spouse withdraws a large amount of money, the court looks at a number of factors. They look at when the withdrawal occurred, if divorce proceedings were underway, how the money was used, and if the withdrawing spouse attempted to hide the funds.

For example, there’s a significant difference between a spouse withdrawing a large sum to pay the bills and provide for their children and a spouse who withdraws a large sum and “gives” it to their friend with the intent of getting it back after the divorce.

Legal Remedies

If the court determines that the removal of funds was improper, the court has several remedies available. They may:

• Require the spouse to return the funds
• Award a larger share of marital assets to the affected spouse
• Order financial sanctions
• Adjust the final property division

Your divorce attorney can help you understand which outcomes are likely in your case, based on the judge overseeing your case and the details of your situation. California family courts have broad discretion to rectify these issues as they see fit.

Protecting Your Finances During Divorce

Financial uncertainty is a common fear in divorce, and disputes can escalate quickly if boundaries are not established. Filing promptly and securing an ATRO can give you recourse if your ex empties a shared bank account and tries to leave you without your fair share of marital assets. The earlier you loop in a divorce lawyer, the easier it is to protect your best interests.

Discuss Your Concerns With Our Divorce Lawyers in California—We’re Here to Help

Our divorce law firm has helped many clients facing the fear and uncertainty of an emptied bank account. You have options and you do not have to navigate this alone. Schedule a consultation now by contacting us online or calling us at 909-466-5575.

Taylor Warner

Taylor has always been an advocate. Growing up the middle child with an older and a younger brother, Taylor developed a strong voice and personality and has always felt strongly about helping others. Becoming a lawyer seemed to fit Taylor’s personality and character – she is a strong leader and a bold advocate. Learn more here.