How to Divorce With Separate Bank Accounts

Open a separate bank account before you file for divorce.

One of the main causes of divorce disputes is the divorcing couple's individual and joint finances. While mediation and court hearings will determine a financial resolution to the divorce, there are steps that you can take to protect your separate financial assets when beginning the divorce proceeding. By opening a separate bank account from your spouse, you can establish an individual financial history and reduce shared debt.

Things You'll Need

• Driver's license
• Identification card
• Financial records
• Telephone

Instructions

1. Open a separate bank account before you file for divorce. This is especially important for individuals in a relationship whose credit has been established solely through mutual marital property or investments. Unfortunately a divorce can negatively affect the credit report of someone who has no established credit history prior to marriage. Therefore, opening a bank account, credit account or investment account before a divorce is final may be the best way to insure financial independence after marriage. If you are a woman who has taken her husband's surname, use this name to open new accounts. After the divorce is ordered, you can change your name back to your maiden or former name, at which time you can change the name on your new accounts. To open an account, you will need a driver's license or identification card and any relevant financial records.

2. Transfer your share of mutual financial assets out of shared bank accounts into your new, individual bank account. Keep a detailed record of any money that you transfer out of your account, as it may be a contested issue in a divorce proceeding.

3. Close any bank accounts that you share with your spouse, especially credit accounts.

4. Freeze all investment and savings assets until a financial agreement is made in mediation or by court order.

5. Pay for all filing fees, lawyer fees and court fees using your separate bank account. This will help establish an individual financial record, and also will not complicate any contested points concerning mutual marital debt.

Tips & Warnings

• Taking steps to separate financial records and accounts may increase tension in a divorce proceedings, but due to the complex nature of divorce and finance, it may prove beneficial to both parties to take all necessary steps to separate financial information before filing for divorce.

References

• MSN Money: 10 Steps to a Money Smart Divorce
• Divorcemag.com: Financial Planning in Divorce