Can my spouse remove my name from our joint bank account?

It is common for couples to share in the responsibility of handling their finances, which is why many opt to open to a joint bank account to facilitate this. Joint accounts can be configured in various ways, requiring either both parties’ signatures or just one for transactions. In general, joint accounts present few problems for couples and are, as such, a favoured means of dealing with finances.

Issues nonetheless arise where the couple in question chooses to split, particularly where this lacks amicability. In instances such as these, consent poses a huge cause for concern, with separating parties potentially attempting to make one-sided changes to the count or, worse, withdrawals.

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The issues that can arise with joint accounts in divorce

There are various concerns a party may have when separating from a spouse with whom they share a joint account.

Do I have to give consent before the account is closed?

Where parties are joint signatories to a joint bank account and one party wishes to close it, that party must first obtain the consent of the other party. The bank is not able to take steps to close the account until they have received confirmation from both parties, respectively, that they consent to the account being closed.

On the other hand, if the joint bank account is set up as requiring only a single signatory, it can closed by one party acting alone, without the need for obtaining the other’s consent. Importantly, however, the money in this account is still regarded as joint marital property. For this reason, the transfer of any ‘joint money’ by one party to a personal account will be taken into account by the courts during division of the couple’s financial assets.

It is also worth noting for these purposes that if there exists any debt in relation to the joint account, both parties will be liable regardless of who incurred the debt.

My name has been removed from our joint account without my consent

A bank should not authorise the removal of your name without your consent. If this has, or could, occur you must contact your bank immediately. Where this happens during divorce proceedings, the courts are also able to consider this an improper use of marital wealth.

If you are, at present, going through a divorce - or you otherwise anticipate that your spouse may soon begin proceedings - it is imperative that you obtain legal advice to determine the necessary steps for addressing any funds held jointly. It is also important that these steps are taken as quickly as possible, particularly where you are experiencing concern that your name has been removed from the joint account.

My ex has emptied our joint account

Any money withdrawn by your ex remains a matrimonial asset. The court views this type of behaviour unfavourably and it could significantly impact the overall financial settlement.

It’s important to note that either party is legally entitled to empty a joint account of all funds. If you have concerns that your spouse may dissipate funds before the divorce settlement, you can notify the bank and request intervention without the other party’s consent. The bank can then freeze the account and ensure that any actions require instructions from both parties.

However, not all banks will authorize this kind of action based on a single party’s instructions, so you will need to consult with your individual bank. Alternatively, you can seek an injunction in certain situations.

You can apply for a freezing injunction, but you must demonstrate to the court that there is a genuine risk of those assets being dissipated if the order is not granted.

Freezing an account requires careful consideration. While it can safeguard your financial position during the settlement process, it may also disrupt important regular payments, such as mortgage or loan instalments.

The need to provide full financial disclosure

When court-based divorce proceedings reach the financial ordering process, it is mandatory for both parties to provide full financial disclosure by way of Form E. As part of this disclosure, each party must provide 12 months’ bank statements for all accounts in their sole or joint name. This will provide visibility with regards to the joint account, allowing record to be taken of any transactions/happenings since the removal of your name. Where these records show significant unilateral changes made to the account during divorce proceedings, the courts are again able to consider this an improper use of marital wealth. This remains the case irrespective of what contributions you or your spouse made to the account.

What preventative steps can I take if I have concerns about our joint account?

Switching from a sole to joint signatories

Where the relationship in question begins to show sign of future separation, it may well be advisable to change the joint account from a sole to joint signatory one. This ensures that both parties’ consent ought to be obtained where movement of funds is to be made.

Clearly communicating your wishes with your spouse

It is also advisable in these cases that you take the time to discuss with your spouse how you would like the funds to be divided. This might help facilitate a mutual agreement that removes the need for any later acrimonious disputes surrounding the joint account and/or your finances. It is important to realise, and note, here that each party is entitled to

Stopping payments into the joint account

It may also be advisable to stop any payments into the joint account and instead pay funds into a separate, personal one. However, you do need to take into account any outgoings that may require funds being added to the joint account, such as mortgage payments and direct debits for utilities and mobile phone charges.

Click here to view our guide to the division of assets in divorce.