Can My Ex Empty Our Bank Account After Separation?

You separate on Friday.

On Monday morning, you check the joint account.

The money is gone.

Unfortunately, disputes about bank accounts can arise very quickly after separation.

If you are concerned your former partner may withdraw or transfer substantial funds, getting advice before the money moves can be critical.

Can my ex legally withdraw money from a joint bank account?

The answer depends on the account arrangements and the circumstances.

From the bank’s perspective, a person who is authorised to operate an account may have the practical ability to withdraw money.

That does not necessarily mean withdrawing substantial joint funds will be ignored in a later family law property settlement.

How money has been dealt with following separation may be relevant to the overall property proceedings.

What should I do if I think my ex is about to take the money?

Get legal advice urgently.

Depending on the circumstances, options may include seeking undertakings or applying for interim Court orders designed to preserve property.

The Court has powers to grant injunctions in family law financial matters.

An injunction may, in appropriate circumstances, restrain a person from transferring, disposing of or otherwise dealing with particular property.

Can the Court freeze a bank account?

Orders can potentially be sought to restrain dealings with particular funds or assets.

Whether the Court will make the orders sought depends on the circumstances and evidence.

Urgency matters.

A vague concern that somebody might spend money is different from evidence showing an imminent transfer or disposal of a significant asset.

What if my ex has already taken the money?

Do not assume it is simply gone for the purposes of the property settlement.

What happened to the money will matter.

There is a significant difference between somebody withdrawing money to meet reasonable post-separation living expenses and somebody deliberately moving substantial funds in an attempt to defeat a former partner’s property claim.

Your lawyer may need to trace:

• how much was withdrawn
• when it occurred
• where it was transferred
• what it was spent on
• whether the funds or assets acquired with them still exist

Should I empty the account first to protect myself?

Be very careful about adopting a “get there before they do” strategy.

Moving all available money without advice can escalate the dispute and may create issues of its own.

If you have legitimate concerns about preserving funds, obtain advice about the safest and most appropriate way to deal with them.

What other assets can potentially be protected?

Concerns about asset preservation are not limited to bank accounts.

Similar issues can arise with:

• proceeds from the sale of property
• shares and investment accounts
• cryptocurrency
• business assets
• valuable personal property
• funds held overseas
• interests being transferred between related entities

The appropriate legal response will depend on what is at risk.

Act before the money disappears

If you genuinely believe a former partner is about to move substantial funds, sell an asset or transfer property, this is not something to leave sitting in your inbox for several weeks.

Family law provides mechanisms that can potentially preserve property while a dispute is being resolved.

But those mechanisms are considerably more useful when advice is obtained before the transaction occurs.

Melmark Law assists clients with urgent and complex property matters, including applications concerning the preservation of assets and funds following separation.

This article provides general information only and does not constitute legal advice. You should obtain advice about your individual circumstances.