When going through a divorce in Australia, one of the most common questions people ask is: If I have a separate bank account, does that mean my money is safe from my ex? The answer is not always simple.
While having your own account might make things seem separate, the law looks at things a little differently.
In a divorce, all assets and debts are considered when working out a property settlement, and that includes money in separate bank accounts.
Even if your name is the only one on the account, the funds may still be included in the overall pool of assets.
That means having your own account doesn’t automatically protect your money during a divorce.
Let’s break this down into the most common questions people have, so you can better understand how separate bank accounts are treated in a divorce in Australia.
Do Separate Bank Accounts Protect Your Money in a Divorce?
Many people believe that if they’ve kept their bank accounts separate during their marriage, their money is safe from any future claims during divorce.
Unfortunately, that’s not always true under Australian family law.
The Family Court doesn’t just look at who owns what on paper. It looks at all the property that either or both partners own, whether it’s in joint names or separate names. This includes:
- Bank accounts
- Superannuation
- Real estate
- Vehicles
- Investments
- Business interests
Even if your spouse never touched your account or didn’t know how much money was in it, the court may still include that money in the property pool to be divided.
The main reason is that marriage or a de facto relationship is treated as a shared financial partnership. So separate accounts do not mean separate ownership when it comes to a property settlement.
Also Read: What Happens in a Divorce: Australian Family Law Guide
Can Your Ex Claim Money from Your Personal Account?
Yes, your ex can potentially claim a share of the money in your personal bank account. During a property settlement, the court takes into account the entire financial situation of both parties. This includes:
- Income
- Savings
- Assets
- Debts
Even if you feel your ex shouldn’t be entitled to your personal savings because you earned it, the court may still see it as part of the shared property pool.
However, the court will also look at other things, such as:
- How long the relationship lasted
- What each person contributed (financially and non-financially)
- Whether one person stayed home to raise children
- What each person will need in the future
The court aims to make a fair and just decision, not just a 50/50 split. So while your ex might have a claim to the money, it doesn’t mean they’ll automatically get half. It depends on the full picture.
How Are Bank Accounts Treated in a Property Settlement?
Bank accounts, whether joint or separate, are treated as part of the couple’s overall asset pool.
The court does not focus on whose name is on the account, but rather who contributed to it and whether it forms part of the shared wealth built during the relationship.
The court takes a four-step approach when handling property settlements:
- Identify all assets and debts: This includes all bank accounts, regardless of whose name they’re in.
- Consider the contributions of each party: These can be financial (like income and savings) and non-financial (like childcare and housework).
- Consider future needs: For example, if one person has a lower earning capacity or will be the primary carer of children.
- Make a decision that is just and equitable: This doesn’t always mean equal, but rather fair, based on the circumstances.
It’s important to note that trying to hide money by keeping it in a separate account can work against you. Full financial disclosure is required during divorce proceedings.
Also Read: How Is Property Divided in a Divorce? Fair Settlement Explained
What Happens If You Open a New Account After Separation?
After separating, many people choose to open a new account to manage their own finances. This is a practical step that can help you feel more in control of your money.
It can also help you avoid disputes about spending from joint accounts.
However, any money you earn or receive after separation may still be considered part of the property pool, especially if the property settlement has not yet been finalised.
The court may look at post-separation contributions and include them when dividing the assets.
It’s a good idea to keep records of what goes in and out of your new account. This may help if questions come up later about who contributed what after the separation.
Keep in mind, the timing of when you separate and when the property settlement is made can make a difference.
Should You Close Joint Accounts Before Divorce Proceedings?
If you have a joint account with your ex, you might be wondering whether to close it or not. In most cases, it is wise to protect your finances, especially if the relationship has broken down and trust is low.
Here are some things you can consider:
- Talk to your bank about changing account settings or requiring both signatures for withdrawals.
- Open your own account if you haven’t already.
- Avoid draining the account, as this could be seen as unfair and might reflect badly during legal proceedings.
- Record everything – if money is withdrawn or transferred, keep a clear paper trail.
Closing a joint account may help reduce conflict over spending, but it should be done carefully.
If possible, try to discuss it with your ex or through a lawyer or mediator to avoid accusations of misconduct.
Remember, even if the joint account is closed, the funds that were in it can still be considered part of the property pool.
When Money Matters Most
Divorce is never easy, and financial issues can make it even harder. Whether your accounts are joint or separate, the court will look at the whole picture when deciding what is fair.
Keeping your own account might give you more control in the short term, but it doesn’t guarantee protection from a claim during divorce.
The most important step you can take is to stay informed and seek professional help if you’re unsure. Every situation is different, and what’s fair for one couple might not be fair for another.
Need Support With a Property Settlement?
Are you unsure how your bank accounts will be treated during your divorce? Let Ipswich Family Lawyers help.
Our team can guide you through each step and help you understand your rights and options with care and clarity.
Contact us today to book a confidential consultation and take the first step toward peace of mind.
