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How joint accounts are divided in a divorce

On Behalf of | May 25, 2021 | Divorce, Property Division

In the state of Colorado, joint assets are divided in an equitable fashion. Therefore, it’s likely that you will receive a portion of the funds inside of a joint bank account. However, this will depend on a variety of factors such as the presence of private accounts, the presence of a prenuptial agreement and other variables that may be deemed relevant by a judge.

Do you have access to other sources of cash?

It’s not uncommon for one spouse to have multiple bank accounts while the other is dependent on the joint account to pay expenses. If you are the spouse who has access to additional funds, you may receive a smaller portion of the joint account. This may be true even if you were the one who contributed the most to it.

What does the prenuptial agreement say?

A prenuptial agreement allows a couple to outline the financial terms of their divorce prior to getting married. Generally speaking, it’s acceptable to cede funds inside of a joint bank account to your spouse as part of a custom divorce contract. For example, the deal may stipulate that each party is only entitled to any contributions that they have made during the course of the relationship. A postnuptial agreement can also be used to bypass state property division rules.

What other factors might be relevant when dividing assets?

The judge in your case may allow your spouse to use joint funds to pay legal fees. If there is any money left in the account after this occurs, that cash may be split in an even fashion. In the event that you make unauthorized withdrawals after a divorce proceeding begins, you may be required to return the amount that you previously withdrew.