What happens to cash in bank accounts in divorce?
Hi, I'm Bill Farias, founder of Farias Family Law. I met with a gentleman about a month ago, and he's moving toward divorce. He has a lot of cash in an individual bank account, and he's afraid he's going to lose it as part of his divorce. So he was asking me if he was going to be able to keep most of it, all of it. And that brought me to answer this question.
This works because cash is considered property in divorce, just like real estate, investment accounts, and just about anything of value. And in determining how property is divided, the court considers a number of factors, including the length of the marriage, the parties' contributions to the marriage, and many other factors. What the court typically does with cash sitting in a bank account depends on the case's specific circumstances. So I'm going to give you two scenarios.
In one scenario, you have a couple that broke up about a year ago. They no longer live together. They are completely financially independent of one another, and their finances are not mixed. In that situation, it is more likely that a court would consider allowing those individuals to keep whatever accumulated in their individual accounts after they split up. However, in another scenario, you have a couple that still lives together and money is accumulating in their bank accounts. And in that case, it is much more likely that the court is going to consider everything that both parties have for division, whether it's in joint accounts or individual accounts.
And then you have these cases that are more in a gray area where the parties are split up, but they are still financially dependent and financially intertwined. In that case, a court may consider some or all of the money in those bank accounts, whether they're in joint accounts or individual accounts, in the division of property.
So the short answer is that there is no black and white answer as to what will happen with money in bank accounts. It really depends on when the parties split up, how financially dependent and intertwined they still are, and a number of other factors.
If you have any other questions about this issue or anything to divorce, you can feel free to call us at 508-675-0464. You can email us at [email protected]. If you found this video helpful, you can share it and subscribe to our YouTube channel. And you can also find us on Facebook and Instagram @fariasfamilylaw.
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