Legally Withdrawing Funds from a Bank Account Before Divorce
As you prepare for an upcoming divorce, it is important you take whatever measures you can to protect yourself and set yourself up for a stable financial future. You might consider withdrawing some money from a bank account to place it in a personal account, but before doing this you should consider the legality of doing so. In some circumstances, withdrawing funds from an account can be considered asset concealment, or may result in you being subject to certain punishments or negative outcomes in your divorce settlement.
Here’s an overview of what you should know.
The legality of withdrawing money before a divorce
The law allows you to withdraw up to half of the money in a joint bank account before you get divorced. You must do this before you file for divorce, otherwise your accounts will be subject to full liquidation and the property division process.
Of course, the legality isn’t the only thing to consider here. You should also consider what this will do to the process of your divorce. If you remove half the money from your accounts without your spouse’s knowledge, it could result in a much more hostile and difficult divorce.
Therefore, it is strongly recommended you and your spouse discuss how you will split the money in the bank account before you get divorced, and work out any potential financial issues you foresee ahead of time. But if you have any reason to expect hostility, you might just decide to go ahead with either withdrawing half the money anyway or placing a freeze on the account.
Even if the divorce gets hostile, you should absolutely avoid withdrawing more than half of the money in the account, as this could cause some legal troubles. At the very least, you will likely need to return it anyway.
For more information about how to set yourself up for a stable financial future in your divorce, contact an experienced Long Island divorce lawyer at Bryan L. Salamone & Associates.