What Happens to Joint Bank Accounts When You Divorce in NJ?

What Happens to Joint Bank Accounts When You Divorce in NJ?

Facing a divorce is undoubtedly challenging, especially when it comes to the complex financial aspects of asset distribution and the fate of joint bank accounts. The state of New Jersey, like many others, adheres to specific regulations governing the division of assets during divorce proceedings. Understanding your rights and responsibilities in this context is crucial for safeguarding your financial interests and ensuring a fair distribution of assets.

Key Takeaways:

  1. Understanding Joint Bank Accounts:

    • Joint bank accounts are held by two or more individuals with equal access to the funds, commonly used for shared expenses.
    • Commingling of funds refers to the mixing of individual and joint assets, complicating asset distribution during divorce.
  2. Ownership During Divorce:

    • Both spouses have equal rights to funds in a joint account, but unilateral withdrawals can lead to legal repercussions.
  3. Handling Joint Bank Accounts:

    • Options include closing the account, freezing it, withdrawing a portion (with caution), or continuing to manage it, preferably with legal counsel.
  4. Protecting Financial Interests:

    • Open communication, consulting a divorce attorney, and maintaining thorough financial documentation are crucial steps.
  5. Legal Guidance:

    • Seeking professional guidance from experienced divorce attorneys like Ziegler Law Group, LLC is essential for fair asset division.

What is a Joint Bank Account?

A joint bank account is a financial account held by two or more individuals, typically spouses or partners, where each account holder has equal access to the funds within the account. Joint bank accounts are often used for shared expenses, such as household bills or savings goals.

When considering divorce proceedings, joint bank accounts can be considered as commingled funds if the money in the account originated from both spouses' incomes or if funds from separate accounts were combined into the joint account.

Commingling of funds refers to the mixing of separate assets or funds with marital or jointly-owned assets, making it challenging to distinguish individual contributions during the division of assets in a divorce. This can complicate the process of asset distribution, as it may be difficult to differentiate between what is considered marital property and what remains separate property.

Ownership of a Joint Bank Account During Divorce

When you and your spouse share a joint bank account, both of you hold equal rights to the funds within it. However, if you're in the midst of a divorce, it's crucial to recognize that you cannot unilaterally take a substantial sum from the joint account and consider it solely yours. Divorce proceedings dictate that marital assets, including funds in joint accounts, be distributed equitably following state laws.

As you navigate the complexities of divorce in New Jersey, it's essential to approach joint bank accounts with caution, ensuring compliance with legal requirements and avoiding unilateral actions that could lead to complications or legal repercussions.

What Should You Do With a Joint Bank Account When Getting Divorced?

New Jersey follows the principle of equitable distribution in divorce settlements, wherein assets are not automatically split 50/50. Rather, the court considers various factors, including individual contributions, financial responsibilities during the marriage, and the existence of commingled assets. Being that these funds in a joint bank account are commingled, it means that you both have a right to the money in said account.

This also means that one of you can’t simply take half of the money and leave the rest. You can’t empty it out without your spouse’s permission either. If either of you did such a thing, there could be legal repercussions. In other words, you have a handful of options that require the assistance of a legal representative. Those options include:

Closing The Account

If both spouses are amicable and can agree on the division of the funds, closing the joint account and distributing the money accordingly is often the simplest solution. It is essential to ensure that all automatic payments and direct deposits are redirected to individual accounts before closing the joint account.

This is generally considered the best choice.

Freezing The Account

In situations where there is a concern that one spouse may deplete the account, it might be advisable to request the bank to freeze the account temporarily. Freezing the account can prevent any further withdrawals or deposits until the divorce proceedings determine how the funds should be divided.

Withdrawing Your Portion

This is only possible if you have yet to begin the divorce. You may be able to draw your half of the amount in the account. However, this action should be taken with caution and only after consulting with a divorce attorney to ensure compliance with state laws.

Continuing to Manage the Account

In certain circumstances, such as ongoing shared financial responsibilities or co-parenting arrangements, some couples might opt to keep the joint account open for practical reasons. However, maintaining open communication and trust is crucial in such cases to prevent potential conflicts.

How to Protect Your Financial Interests

When facing the division of joint bank accounts and commingled assets during divorce in New Jersey, adopting strategic measures can help safeguard your financial well-being. Here are some practical steps to consider:

Open Communication

Clear communication and mutual agreement can streamline the process and prevent potential disputes. For example, if you are both amicable, consider closing the joint account mutually and dividing the funds.

Seek Legal Counsel

Consulting an experienced divorce attorney like those at Ziegler Law Group, LLC is essential for understanding the legal intricacies of asset distribution and protecting your rights during the divorce process. A knowledgeable attorney can offer valuable guidance and ensure compliance with legal requirements throughout the proceedings.

Proper Documentation

Maintaining thorough financial records and documentation is critical for demonstrating individual contributions and segregating commingled assets. Detailed documentation can support your case and contribute to a fair and just distribution of assets during divorce.

Contact a NJ Divorce Lawyer Today

Handling joint bank accounts during divorce requires careful consideration and a clear understanding of legal implications. Seeking professional guidance from experienced divorce attorneys is essential to ensure a fair asset division in compliance with state laws.

Ziegler Law Group, LLC is here to provide compassionate legal assistance for individuals facing divorce complexities. Our seasoned team of attorneys is dedicated to safeguarding your rights and interests while ensuring a smooth financial resolution, including joint bank accounts.

For tailored legal solutions and support, contact Ziegler Law Group, LLC today at 973-533-1100 or by filling out the consultation form.


  1. What is a joint bank account?

    • A joint bank account is a financial account held by two or more individuals, typically spouses, with equal access to the funds.
  2. How is a joint bank account treated during divorce in New Jersey?

    • New Jersey adheres to equitable distribution, considering various factors to ensure a fair division of joint bank account funds.
  3. What actions can be taken with a joint bank account during a divorce?

    • Options include closing the account, freezing it, withdrawing a portion (with legal counsel), or continuing to manage it based on mutual agreement.
  4. How can one protect their financial interests during a divorce?

    • Engaging in open communication, seeking legal counsel, and maintaining thorough financial documentation are key steps.
  5. How can Ziegler Law Group, LLC assist with joint bank accounts during divorce?

    • They provide┬álegal assistance to ensure fair asset division and compliance with state laws, aiding in managing joint bank accounts during divorce.

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