Key points
This case in 30 seconds
- Situation
- The wife was preparing to move out and worried that the savings in the joint account might be withdrawn.
- Approach
- We helped her state in the separation agreement that the savings in the account are split equally, and that each person is responsible for their own income and any new debts after the separation.
- Result
- The agreement states that the savings in the account are split equally and the account closed, and that each person is responsible for their own income and debts after the separation.
Three points for handling this well
- Before moving out, state in the agreement how the joint account will be handled.
- Split the savings in the account equally and close it, so each person’s responsibilities are clear.
- Each person is responsible for their own income and any new debts after the separation.
Background
After talking with her husband, the wife decided to separate and prepared to move out.
The wife was preparing to move out and worried that the savings in the joint account might be withdrawn.
She and her husband had always had a joint account, used for household and daily expenses.
- Unsure whether the other side could use the savings in the account after she moves out
- Worried about how to keep clear track of new expenses and income after the separation
- Not sure whether to keep or close the joint account
She had searched online herself, but different websites said different things, and she was not sure whether to deal with the account first or simply move out.
Before moving out, she wanted the joint account and each person’s responsibilities after the separation set out clearly.
Before moving out, the first thing to do is to set out the joint account and each person’s responsibilities after the separation in the agreement.
Why deal with the joint account first?
In this case the joint account was dealt with in the agreement early, because the wife was preparing to move out and the two of them had always shared the account.
Why deal with the joint account first?
A separation agreement can state which accounts each person keeps, how joint accounts and credit cards are handled, and who is responsible for income and new debts after the separation.
If the joint account is not dealt with, either side can still withdraw the savings in it after you live apart.
What is the difference between setting it out clearly and not dealing with it?
| Set out clearly in the agreement | Not dealt with | |
|---|---|---|
| Savings in the account | Split equally, then the account is closed | Either side can still withdraw them |
| Income after the separation | Each person is responsible for their own | Not stated, so easy to argue about |
| New debts | Each person is responsible for their own | Not stated, so the two sides may pursue each other for them |
| If you divorce later | The court will consider what the agreement says | There is no agreement to refer to |
With everything set out clearly in the agreement, the savings in the account, income after the separation and new debts all have something to rely on.
Before moving out, how should the joint account be handled?
In this case, the two sides agreed to split the savings in the account equally and then close it. After the separation, each is responsible for their own income and any new debts.
Does signing a separation agreement mean you are already divorced?
Signing a separation agreement does not mean you are divorced. During a separation you are still married, and to end the marriage you still have to apply to the court for a divorce.
When you divorce later, the court will consider what the agreement says but is not bound by it.
For details of the separation agreement and account arrangements in this case, see ‘Separation agreement’.
A similar situation may also relate to ‘the case of a spouse who does not agree to the divorce’ or ‘the case of separating under the same roof’, which are also worth reading.
Once the joint account and responsibilities after the separation are settled, what remains is knowing how each stage works in practice.
How we helped
From the first consultation to signing the agreement, the same dedicated consultant follows your case. We help in three stages.
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Discussing and sorting out
From the first consultation
At the first consultation, the dedicated consultant finds out about the joint account the wife shares with her husband and the arrangements for moving out.
We help her sort out the records of the savings in the account, and the arrangements for income and expenses after she moves out.
Dealing with the joint account before moving out is the key first step.
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Drafting and signing
Once everything is in order
We help draft the separation agreement, stating how the savings in the account are split equally, and that each person is responsible for their own income and any new debts after the separation.
The two sides go through it clause by clause, changing it until they are satisfied, and then sign.
With the account arrangements set out clearly, there are fewer arguments later.
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Splitting the savings and closing the account
After signing
After signing, we remind the client to follow the agreement in dealing with the savings in the account and closing it.
After the account is closed, each person is responsible for their own income and new expenses during the separation.
Once the account is closed, responsibilities after the separation are also clearly divided.
Throughout, the client could phone the dedicated consultant at any time, in Cantonese, Mandarin or English.
We explained every court letter first, and what needed following up.
We are a divorce consultancy. We help you organise information, prepare documents and understand the procedure. If your case needs legal advice or a representative in court, we will tell you honestly and help you make other arrangements.
With the three stages joined up, this was the outcome.
Outcome
The wife was preparing to move out, and the agreement states that the savings in the account are split equally and the account closed, and that each person is responsible for their own income and debts after the separation.
Because how the savings in the account are handled is already set out clearly in the agreement, there have been fewer arguments about money in the account since they began living apart.
For the clients, the biggest difference is that, even after moving out, the savings in the account already have a method of division set out in the agreement.
Throughout, the dedicated consultant helped sort out the account and financial details and reminded the client to pay attention to what the agreement says.
If the joint account is not dealt with early, it often takes longer after moving out to separate the savings and responsibilities.
She has now settled the account together with her husband, and income and debts after the separation are clearly divided, which was what mattered most to her from the start.
How does the procedure change if your situation is different?
This approach was used because the wife was preparing to move out and the two of them had always shared a joint account. If your situation is different, the approach will change.
No joint account, kept separate: If the two of you have no joint account, the agreement can simply state the accounts and assets each person keeps, and that each is responsible for new expenses after the separation.
Already moved out, and only now thinking of the account: Even if you have already moved out, you can still add the account and financial arrangements to the agreement. Deal with it as soon as you can, to reduce arguments later.
Dealing with maintenance at the same time: If you want to deal with maintenance in one go as well, see ‘the case of paying maintenance as a lump sum’.
Three things you can do first in a similar situation
- Before moving out, state in the agreement how the joint account will be handled.
- Split the savings in the account equally and close it, so each person’s responsibilities are clear.
- Each person is responsible for their own income and any new debts after the separation.
FAQ
Why deal with a joint account before separating?
If the joint account is not dealt with, either side can still withdraw the savings in it after you live apart.
How can a separation agreement deal with a joint account?
A separation agreement can state which accounts each person keeps, how joint accounts and credit cards are handled, and who is responsible for income and new debts after the separation.
What finally happens to the savings in the account?
The agreement states that the savings in the account are split equally and the account closed, and that each person is responsible for their own income and debts after the separation.
Does signing a separation agreement mean you are divorced?
Signing a separation agreement does not mean you are divorced. During a separation you are still married, and to end the marriage you still have to apply to the court for a divorce.
What else can a separation agreement cover?
A separation agreement generally has six parts: the date of separation; care of and access to the children; living expenses and maintenance; housing and mortgage; savings, joint accounts and debts; and divorce later and signing.
If there are no children or property, the relevant parts can be left out.
Do you give legal advice or represent clients in court?
We are divorce consultants. We help you gather information, prepare documents and understand the procedure.
If your case needs legal advice or court representation, we will tell you honestly and help you make other arrangements.
Illustrative case: this page is adapted from similar cases we have handled. The people and details have been changed, and it is not a record of an identifiable client.
Every case is different, and the time taken and the result will vary. This page is general information only. It is not legal advice and is not a promise about your case.
