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Separate bank accounts are no protection in divorce

On Behalf of | Jul 16, 2020 | Family Law

More Indiana married couples are keeping separate finances, including their own bank accounts. There is a common perception that this would be enough to protect a spouse in the event of a divorce. However, the laws governing property division state that all assets accumulated in the course of a marriage are marital property. Thus, separate accounts will not have the desired effect when it comes to protecting assets.

Surveys have shown that roughly 28% of millennials are forgoing to traditional joint bank account after they are married. Millennials are getting married later and are more financially established at the time of their nuptials. Many millennials witnessed their parents getting divorced and fighting over money. However, the second the marriage begins, any asset that either spouse accumulates becomes part of the marital estate and is subject to division in a divorce.

What spouses really need to do in order to fully protect what they are bringing into the marriage is to sign a prenuptial agreement before the date of the wedding. This will specify how assets are to be divided in the event of a divorce. This is the only way for one to keep their property in their own hands.

In order to learn more about finances and divorce or prenuptial agreements, one should consult with a divorce attorney before the wedding. This is not paradoxical because it is the divorce attorney who could help their client draft and negotiate the agreement. They might make suggestions for ways to reach an equitable agreement that is enforceable in court in the event that it is ever challenged. Those with no prenuptial agreements are at risk.

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