Moving funds from joint acct to separate account

[Onwego]

What is the name of your state (only U.S. law)? Alabama

My friend has signed the Complaint for Divorce and it will be filed with the court today (includes request for Pendent Lite)

Basic info:
Her - Homemaker until 1 year ago, 64 - now part-time cashier grocery store
Him - Postal Employee, 59
Marriage duration - 19 years
(No children from marriage)

Their communication is basically broken (no surprise), but the topic of divorce has lightly been touched on. She is initiating the divorce as she can no longer stand his constant verbal abuse. Her intention is to have him served at work and have the moving van at the home to move her stuff to an apartment immediately after he heads to work the day he is served. It is anticipated that he will make the divorce as difficult as possible.

She has some savings that are not marital assets - $8K inheritance that was never commingled. She is using that to pay the initial attorney fee and to secure an apartment and utilities.

My question is: They have a joint money market account with balance of approximately $30K. Can she move $15K to her personal savings account from the joint account on the day he is served? She will not be able to afford the separate living expenses more than a couple of months with her savings and salary. The money market funds are held in a credit union where he is the primary member on that account. Several previously divorced women told me that the minute the divorce was initiated they were locked out of the joint accounts at this credit union. The concern is that he will drag his feet in any way possible to let go of funds for her to pay her normal monthly living expenses.

Yes, she has an attorney and I have gone to both meetings with her. My concern is that the attorney will answer this question to the letter of the law and not give us the advice on whether she can do this as a practical matter to give herself some basic protection during this process.

Please let me know if additional information is needed - any insight into this matter is greatly appreciated!

 

[LdiJ]

What is the name of your state (only U.S. law)? Alabama

My friend has signed the Complaint for Divorce and it will be filed with the court today (includes request for Pendent Lite)

Basic info:
Her - Homemaker until 1 year ago, 64 - now part-time cashier grocery store
Him - Postal Employee, 59
Marriage duration - 19 years
(No children from marriage)

Their communication is basically broken (no surprise), but the topic of divorce has lightly been touched on. She is initiating the divorce as she can no longer stand his constant verbal abuse. Her intention is to have him served at work and have the moving van at the home to move her stuff to an apartment immediately after he heads to work the day he is served. It is anticipated that he will make the divorce as difficult as possible.

She has some savings that are not marital assets - $8K inheritance that was never commingled. She is using that to pay the initial attorney fee and to secure an apartment and utilities.

My question is: They have a joint money market account with balance of approximately $30K. Can she move $15K to her personal savings account from the joint account on the day he is served? She will not be able to afford the separate living expenses more than a couple of months with her savings and salary. The money market funds are held in a credit union where he is the primary member on that account. Several previously divorced women told me that the minute the divorce was initiated they were locked out of the joint accounts at this credit union. The concern is that he will drag his feet in any way possible to let go of funds for her to pay her normal monthly living expenses.

Yes, she has an attorney and I have gone to both meetings with her. My concern is that the attorney will answer this question to the letter of the law and not give us the advice on whether she can do this as a practical matter to give herself some basic protection during this process.

Please let me know if additional information is needed - any insight into this matter is greatly appreciated!

Yes, she can do that, now, before the paperwork is filed, but I would not recommend that she comingle it with her separate savings. I would recommend opening a completely separate account to hold that money. She will also have to fully account for it in the divorce.

However, if there has been any discussion of divorce at all, don't be surprized if he has already moved ALL of the money.

 

[Onwego]

Yes, she can do that, now, before the paperwork is filed, but I would not recommend that she comingle it with her separate savings. I would recommend opening a completely separate account to hold that money. She will also have to fully account for it in the divorce.

However, if there has been any discussion of divorce at all, don't be surprized if he has already moved ALL of the money.

Although I suspect that he could possibly be hiding money in an account that she does not know about, as of today he has not moved the money from this account. I think that it is most likely that he will go to the credit union when he is served and move ALL of it that day even though it is not legal. Then there will be nothing she can do about it except file for contempt, correct?

When you say 'before the paperwork is filed', do you mean with the court today? or before he is served?

Thanks for your speedy response!

 

[LdiJ]

Although I suspect that he could possibly be hiding money in an account that she does not know about, as of today he has not moved the money from this account. I think that it is most likely that he will go to the credit union when he is served and move ALL of it that day even though it is not legal. Then there will be nothing she can do about it except file for contempt, correct?

When you say 'before the paperwork is filed', do you mean with the court today? or before he is served?

Thanks for your speedy response!

I would be stopping at the bank before filing anything.

 

[mistoffolees]

Although I suspect that he could possibly be hiding money in an account that she does not know about, as of today he has not moved the money from this account. I think that it is most likely that he will go to the credit union when he is served and move ALL of it that day even though it is not legal. Then there will be nothing she can do about it except file for contempt, correct?

When you say 'before the paperwork is filed', do you mean with the court today? or before he is served?

Before it is filed. As soon as she files it with the court, the rules on dissipation of assets apply. She will still have to account for the money she moves before she files for divorce, but at least she won't be in contempt.

If he moves all of the money, she can file for contempt. I would get an account balance on the morning of the day she files just so you have an accurate starting point.

 

[Onwego]

Before it is filed. As soon as she files it with the court, the rules on dissipation of assets apply. She will still have to account for the money she moves before she files for divorce, but at least she won't be in contempt.

If he moves all of the money, she can file for contempt. I would get an account balance on the morning of the day she files just so you have an accurate starting point.

I'm a little confused I guess that leads me to a different question now....

How is he going to pay the bills from this money market account where his paycheck is direct deposited if the rules on dissipation of assets are in place?

 

[LdiJ]

I'm a little confused I guess that leads me to a different question now....

How is he going to pay the bills from this money market account where his paycheck is direct deposited if the rules on dissipation of assets are in place?

Paying the bills is not dissipation. Paying for an attorney for the divorce is not dissipation. Hiding the money, spending it frivolously, using it to completely pay off HIS car, or some other asset of his, taking an expensive vacation with a new girlfriend, or giving it to someone else IS dissipation.

As long as the two of them use the money to cover ordinary bills and living expenses, and an attorney, they are not dissipating assets.

She needs to get her half of the money out of the account NOW...and fully account for it in the divorce.

 

[Onwego]

Thanks for the helpful answers!!