Need a Divorce Lawyer in New Jersey?

Deciding to end a marriage is not an easy choice, and it comes with its own questions and challenges. One of these is whether to start your own bank account. 

There are various factors to consider in making this decision. For example, you should never intend to financially hurt your spouse or hide the account. And if you are a victim of domestic violence, you should prioritize your safety over creating a separate bank account.

Read on to learn more about the division of bank accounts and other assets in a New Jersey divorce, the benefits of having a separate bank account, the legal considerations of a separate account, and how a Rosenblum Law attorney can assist you in this decision.

Understanding Marital and Separate Assets in a NJ Divorce 

There are two types of assets in a divorce proceeding: 

• Marital assets: all property or other assets acquired during the marriage
• Separate assets: all property or other assets acquired by one spouse before the marriage, including as a gift or inheritance  

Property in a New Jersey divorce is divided based on equitable distribution. Equitable distribution divides the marital assets equitably, but this does not mean assets will be divided equally between both parties. In determining equitable distribution the court will consider various factors, such as:

• The duration of the marriage
• The standard of living established during the marriage
• The debts and liabilities of each party 
• Income, property, and other assets brought into the marriage by each party

The funds in a separate bank account opened during the marriage, even if the couple is in the process of getting a divorce, could still be subject to equitable distribution. 

Working with an experienced attorney can give a spouse a better idea of how their assets may be divided in a NJ divorce. An attorney will also help a spouse fight to receive as many of the marital assets as possible. 

How Having a Separate Bank Account Will Affect a Divorce

Although having a separate bank account could still be considered in equitable distribution, there are still benefits to opening a separate bank account, such as: 

• Personal financial autonomy: Couples may feel that they can more easily track and manage their own expenses and income if they have a separate account that they can monitor. 
• Prevention of unauthorized access: If an individual believes that their spouse might take money without permission, having a separate account can help prevent this. 
• Financial Planning: For individuals thinking about divorce, having a separate account might make the transition to being single easier. Individuals will have the chance to manage their finances independently and plan how they will handle their income and expenses after their divorce. 

What To Do When Opening a Separate Bank Account 

Maintain the Status Quo 

Opening a separate bank account is acceptable if a divorce does occur, but one should not do so for the financial detriment of their spouse. This is because in New Jersey, both parties are legally required to maintain the status quo when it comes to the standard of living established during the marriage. 

If one spouse opens up a separate account, puts all their money in that account, and terminates their contributions to the marital expenses, it could give the other spouse grounds to file a motion with the court to resume the status quo. 

Full Financial Disclosure 

When thinking about divorce and opening a separate bank account, the individual should be aware that full financial disclosure is required in a New Jersey divorce. This means that a spouse who opens a separate bank account should not try to hide the new account or any of the money withdrawn from the joint account. If a divorce proceeding does occur, all income, debts, and assets must be disclosed.  

How to Transition from a Joint Bank Account to a Separate Bank Account 

Although bank procedures vary, opening a separate account can be accomplished by following these general steps: 

1. Review the account terms: Read the conditions of all joint accounts, specifically regarding withdrawals and account modifications. 
2. Research and compare banks: Make sure interest rates, fees, and other services offered by the bank are acceptable. 
3. Gather required documentation: Opening a bank account requires identification, such as a driver’s license or proof of address. 
4. Open the account: Visit the bank in person or on its website to fill out the application to open a new account.
5. Notify the other spouse: The individual opening the new account should notify their partner before withdrawing any money from the joint account. This will ensure financial transparency is upheld if a divorce is filed.
6. Update any automatic payments or direct deposits: the individual should ensure that no further money will go into the joint account by changing their direct deposit information, as well as any other automatic payments, such as bills. 

Opening a Separate Bank Account as a Victim of Domestic Violence 

Opening a separate bank account as a victim of domestic violence has different considerations and challenges. For example, victims of domestic violence may be in dangerous situations and/or be financially dependent on their partner. 

If a victim feels their safety may be at risk, they should prioritize getting out of the home and finding help. Victims should not open up a separate bank account if they feel it could upset their partner and enganger their safety. 

For victims in immediate danger, call 911 immediately. The police will be able to help victims evacuate the home and find safety. The New Jersey Domestic Violence Hotline is available at 1 (800) 572-SAFE (7233) 24 hours a day, seven days a week for confidential support, referrals, and escape strategies. Victims can also call the United States National Domestic Violence Hotline at 800-799-7233, or by texting BEGIN to 88788.

Once a victim is safe, there are resources and services in New Jersey for domestic violence victims that are free of charge, such as housing and shelter, basic needs fulfillment such as food, and counseling services. Victims can also file for a restraining order in the Family Division Office of the Superior Court in their county, in the county where the domestic violence occurred, in the country where their partner lives, or in their local police department.

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Call a Rosenblum Law Attorney Today

If you or your spouse eventually decide to file for a divorce in New Jersey, you will require the help of an experienced divorce attorney. At Rosenblum Law, our attorneys have the experience and knowledge to create a strong legal strategy to fight for the best possible outcome. One of our attorneys will fight to ensure you receive a fair portion of the marital property, including any funds deemed as marital assets in your separate bank account. Contact us today for your free consultation.