Is Taking Money From a Joint Account Stealing?
It's extremely common for a husband and wife to have joint accounts, whether for convenience or to reach shared financial goals.
All named account holders can access the funds when they own a joint bank account, using the funds how they see fit.
However, many wonder if taking money from a joint account is stealing.
The answer is complicated because, in most situations, both parties can equally access the funds.
However, if your marriage is in trouble or you're heading for divorce, there's a fine line between theft and withdrawing what's rightfully yours, and it is often left up to the family court.
Is Taking Money From a Joint Account Stealing?
It may feel like stealing money from a joint account you didn't deposit is a crime, but it's not theft if your name is on the account. Each person named on the account has free access to the funds.
For example, if you withdraw funds to cover household expenses, child support, debt, or even to spend on yourself, in most situations, no one would consider it theft. You don't have to get permission to withdraw funds, and you can use them as you see fit.
There is an exception to the rule.
Taking money from a joint account for anything except shared household expenses may be considered stealing if you're in the middle of a divorce or separation.
The circumstances surrounding the withdrawal determine the outcome, but if there are hard feelings between partners, it can be a fine line to walk.
For example, emptying a bank account while in the throes of a messy divorce can be considered stealing, especially if you hide the funds.
Who Owns the Money in a Joint Bank Account?
Both parties own a joint bank account. One person doesn't own more than the other, no matter how much money one joint account holder deposited. The bank doesn't keep tabs on how much each person deposits and then limits them to that amount for withdrawals.
With a joint bank account, both partners have equal access to all funds in the account. This means everyone has equal access to use some or all of the funds.
Get on the same financial page with your partner by getting in touch with a financial coach.
What Are the Joint Account Withdrawal Rules
Unfortunately, there aren't any withdrawal rules for joint accounts. As I said earlier, both parties have equal access to the funds. Both partners can write checks, use a debit card, or withdraw funds from the account.
In addition, neither person must ask permission from the other spouse to withdraw funds, and the bank only requires one person to withdraw. In other words, there's no need for a second signature.
Can a Spouse Withdraw Money Without Permission?
Any named person on the bank account can withdraw money without permission. This can be a good thing when you want easy access to your funds.
However, if you're in the middle of separation or divorce, it can be scary. While the court won't allow one person to empty an account without reason, there is still the risk of one spouse stealing the funds.
Can I Sue Someone for Taking Money From a Joint Account?
It would be pretty difficult to sue someone for taking money from a joint account. However, if you are getting divorced, your attorney can present to the court the fact that one spouse took money from a joint account that wasn't for the benefit of the household.
While it's not the same as suing someone, the judge can order that the spouse who took the funds pay them back or give up an asset of equal value. There can also be penalties for taking funds intending to hide or steal them during a divorce.
What Happens to Joint Bank Accounts After the Divorce?
The divorce court judge decides what happens to joint bank accounts after a divorce. In most cases, they split the assets 50/50, but that's not always the case.
Each situation is different, and it depends on what other significant assets you and your partner have when deciding how to split them.
FAQs
Can You Get in Trouble for Taking Money Out of a Joint Account?
No laws state you cannot take money out of a joint account. If your name is on the account, you have just as much right as the other spouse to withdraw funds. You could only get in trouble if you withdraw funds intending to hide them during a separation or divorce.
Can Right of Survivorship Bank Account Be Challenged?
You may be able to challenge a right of survivorship bank account if you think there is a legal basis to do so.
Like any other legal challenge, you must have adequate proof of the reason for contesting the right of survivorship and prepare a formal document that you submit to the court to contest it.
Can One Person Withdraw Money From a Joint Account?
One spouse can withdraw some or all of the money from a joint account. Banks don't ask why you are withdrawing the funds or ask if you have the other partner's permission. If your name is on the account, you can withdraw the funds.
Can One Spouse Freeze a Joint Bank Account?
Any person named on a bank account can freeze it if necessary. The bank doesn't require the permission of both parties to access the account. One person can request the freeze, and the bank must oblige.
What if a Family Member Stole Money From a Bank Account?
If you think a family member stole money from your bank account, you must report it to the bank immediately. The bank has ten days to investigate and determine whether the theft occurred.
Is It Illegal To Transfer Money From a Joint Account?
If your name is on the joint account, it is not illegal to transfer money from it. It might only be considered theft or illegal if you are trying to hide funds from an ex-spouse during a divorce.
You Can Find Financial Peace
If you own a joint account with a spouse, it's considered marital property, but sometimes, taking money from a joint account is stealing.
This usually only occurs during divorce or separation when one spouse tries to take control of the account and hide funds, keeping them from the other spouse.
Fortunately, family law doesn't allow anyone to hide funds from any accounts. If it's marital property, it becomes a part of the split assets that the court decides. While you can use funds in a joint account how you see fit, there can be restrictions if there are marital troubles.
If you worry about the state of your marriage but aren't ready to head to divorce court, consider marital therapy to help you and your spouse achieve peace and harmony in your marriage and finances, with all separate and joint accounts.
Take the first step to financial peace in your marriage by scheduling a consultation with a financial coach today!
Want to level up your game around money in your relationship? My free quiz will help you learn your Couple’s Money Personality Type AND how you can grow from there!
Adam Kol is The Couples Financial Coach. He helps couples go from financial overwhelm or fighting to clarity, teamwork, and peace of mind.
Adam is a Certified Financial Therapist™, Certified Mediator, and Tax Attorney with a Duke Law degree and a Master's in Tax Law from NYU. He is a husband, dad, and musician, as well.
Adam's wisdom has been shared with The Wall Street Journal, the Baltimore Ravens, CNBC, NewsNation, and more.
