Having represented hundreds of married couples, we have seen plenty of them present to us for a divorce with the proverbial separate bank accounts. the item seems there can be a correlation between a separate bank account as well as a separate heart.
Money, as with sex as well as religion [as well as we could hasten to add, children], can be one of the primary things which couples argue about as well as get divorced over. Money, as the bible tells us, can be indeed the root of all evil.
Even so, if evil, money can be a necessary evil. Here are some potential problems with couples which maintain separate bank accounts as well as assets:
- Mistakenly separate property. If a couple gets married as well as brings their separate accounts to the marriage, even without overly co-mingling the assets by creating a joint account, such property can eventually get co-mingled over time as well as become part of the marital estate. An example of This particular could include where one spouse uses the funds via a separately titled account to pay marital bills. When you enter into a marriage as well as desire to keep your separate property separate, you have to be certain to segregate the property. Even when you do, us lawyers love to find ways to “invade” the separate property of the moneyed spouse as well as haul the item into the marital estate. If you are getting married nevertheless insisting on the maintenance of separate property, then you should consider executing a prenuptial agreement.
- Separate property has greater exposure to creditors. When you are sued by creditors or file for bankruptcy, joint assets are unavailable to satisfy the judgment creditor as well as the bankruptcy trustee. today be careful here; you cannot just go plunging your money into a joint account to avoid creditors. which could be deemed a fraudulent transfer made to avoid creditors as well as such assets may be used to satisfy the creditors.
- Administrative complication upon death. If a married couple maintains separate checking accounts, then some administrative issues will arise from the event which a spouse dies. For example, the surviving spouse may need to secure a death certificate prior to accessing the funds from the account, assuming which she was named as the power of attorney. This particular can be not inherently difficult to do nevertheless, do you want to be doing the item amid the funeral as well as burial of your loved one.
- Separate accounts do not encourage financial communication. Finally, maintaining separate accounts does not foster open communication between spouses about their finances. The different spouse can be left to guess as to the net worth of the individual, the net worth of the marital estate. One spouse may never know about any savings cushion unless asked. The overall financial picture of the couple remains hidden via full view. When the item comes to finances, This particular can be usually not a Great thing in a marriage.