Although a divorcing spouse may be able to withdraw money from joint accounts, they may not be able to keep or spend it. However, to protect your interests, it is wise to act quickly to document financial information and prevent asset depletion.
Legally, a spouse may not hide or deplete assets that belong to both spouses. As experienced divorce attorneys, we’ve seen many cases where one spouse tries to do so, and if the other spouse doesn’t take the right steps to understand the financial picture and secure their share, an unscrupulous spouse might get away with financial cheating. We want you to understand your rights and how to protect them.
Does My Spouse Have the Right to Take All the Money if the Account is in Both of Our Names?
Your spouse does not have the right to take all the money for their own use, but the bank may allow them to. There are different laws at work. The bank focuses on general laws that give account owners full ownership of the assets in an account. But ultimately, what matters for spouses is the law governing property division in divorce.
Florida law requires marital assets to be shared equitably between divorcing spouses. That means one spouse can’t get away with going on a mad, selfish spending spree with jointly-owned funds. It may be reasonable to withdraw money to pay regular expenses, but vindictive, wasteful spending can be addressed.
What Happens if My Spouse Takes Money from Our Joint Account?
A withdrawal from a joint account during divorce will be analyzed based on factors such as:
- The amount taken
- The source of the funds
- How the money was used
- Whether the withdrawal was hidden or disclosed
If the money was joint marital property and was used wastefully, the judge may order the other spouse to receive a greater share of the remaining marital property to make up for the depletion of marital assets. The same is true if a spouse tries to secretly transfer funds to a friend or family member.
What Should I Do if I Think My Spouse is Hiding or Moving Money?
If you think your spouse might be hiding assets or try to do so in the future, there are some steps you can take to protect yourself:
- Make copies of all financial records, including bank statements, tax returns, loan documents, pay records, credit card statements, and records from retirement and investment accounts. A forensic accountant can analyze the data and determine whether assets are unaccounted for.
- Look for unusual withdrawals, payments, or transfers. People often try to hide assets by giving money to others to hold until the divorce is over, or by paying fake debts that are later reversed.
- Do not alter or destroy any records, even if you think they make you look bad
- Explain your concerns to your divorce attorney. It is wise to work with a divorce team experienced in complex, high-asset divorce cases because they have the financial knowledge to investigate the issues thoroughly.
FAQs About One Spouse Spending Joint Funds
Is money in a joint bank account automatically considered marital property in Florida?
Florida law takes a number of issues into consideration when determining whether property belongs to one spouse individually or whether that property is marital property owned jointly by both spouses:
- Assets acquired during the marriage are generally considered jointly owned regardless of whether only one spouse’s name is on them.
- Assets owned by one partner before the marriage are likely to be considered that spouse’s individual property, but if those assets are commingled with marital assets, then they could be considered jointly owned marital assets
- Assets given to one partner by a third party or received by one partner as an inheritance initially start out as that spouse’s separate property, but they can be commingled with marital assets and become joint assets
Keeping these factors in mind, it is likely that most or at least some of the money in a joint account will be treated as marital property. But the source of the funds matters more than the name on the account when distributing marital assets in divorce.
Can I take money from our joint account before filing for divorce?
The law allows you to use funds in a joint account for ordinary living expenses. However, if there appears to be any attempt to waste or hide funds, then you could face legal consequences. If you need to withdraw a significant amount of money, talk to your attorney about how to handle the transaction appropriately.
What if my spouse wasted money in the past?
Florida law has a two-year look-back period for wasteful spending. So you could receive an additional share of marital property to account for improper spending that occurred up to two years before the time you filed for divorce.
What types of spending are considered wasteful?
Section 61.075(1)(i) of the Florida Statutes instructs the court to account for “intentional dissipation, waste, depletion, or destruction of marital assets,” and courts have interpreted this to include situations where a spouse has spent money on:
- Extramarital affairs
- Excessive gambling
- Secret gifts or loans to friends and family
- Cosmetic surgery (after filing for divorce)
However, a spouse who alleges that the other spouse has wasted marital funds has the burden of proving the spending was done intentionally for the other party’s sole benefit at a time when the marriage was breaking down. Simply mismanaging or squandering assets is usually not enough to be considered dissipation of assets. For instance, one spouse who used marital funds to buy furniture for a new residence after moving out was considered to be acting reasonably and not wasting assets even if the other spouse disagreed with the amount spent. In another case, a spouse who spent tens of thousands restoring a classic car was not considered to have wasted marital assets. So, what’s needed are thoughtful legal arguments backed by solid evidence to convince the court that one spouse should be held accountable for wasteful spending.
Leap Frog Divorce Understands How to Protect Your Financial Interests in Divorce
The financial impact of a divorce is never easy to deal with, but it can be catastrophic if you don’t take the right steps to protect yourself. At Leap Frog Divorce, we have decades of experience protecting assets and limiting unnecessary debt exposure in divorce. We know how to protect your interests when dealing with complex assets such as closely-held businesses and unique commercial properties.
To get started with a plan of protection, schedule a confidential consultation with our team by calling 407-890-7297 or contacting us online today.
