As a divorce lawyer in Singapore, I sometimes face questions on joint bank accounts and divorce.
Recently, I came across an article that discusses the idea of having a joint bank account with your spouse.
The advantages
- Joint bank accounts promote communication
According to the article, having a joint bank account promotes communication. Each spouse will learn about the spending habits and earning power of the other. This will lead to a successful marriage, since monetary woes often cause divorce in Singapore.
- Joint bank accounts get the household expenses in order
With a joint bank account, the couple would know what is coming and what is going out of the household account. Hence, the couple could develop a budgeting plan and stick to it.
- Joint bank accounts promote mutual financial responsibility
Having a joint bank account helps couples find out which expenses can be reduced. This will help the couple work together towards financial goals.
The disadvantages
- Emotional barriers
There is no guarantee that one of the spouses would spend the money in the joint bank account frivolously. This could lead to even more arguments!
Worse, one of them could abscond with the entire sum in the joint bank account.
See: “Important for Married Couple to Have Joint Bank Account”, www.areyouready.sg, 29 December 2016
Joint bank accounts and divorce
What happen to joint bank accounts in the event of a divorce?
The funds in joint bank accounts may be matrimonial assets. Money acquired during the course of marriage by one party constitutes matrimonial asset. Hence, they may be divided under the Women’s Charter Singapore.
Contact us today to have a discussion on joint bank accounts and divorce!
You may also be interested to read more about:
2. Annulment (Nullity) of Marriage
5. Maintenance Issues (Alimony)
For more information, please contact us here.
