Untangling your personal finances during a divorce can feel overwhelming. After years of pooling income and seeing your assets as shared, figuring out who gets what is rarely as simple as splitting things 50/50. Money is deeply tied to emotions, which can lead to impulsive decisions that you might regret later.
Here’s the good news: You don’t have to figure it all out in one day.
🧘♀️ Taking a breath, educating yourself, and leaning on trusted experts can make all the difference. Start by understanding what’s yours, what’s theirs, and what’s shared. A clear plan—and a little patience—will help you navigate this tricky process with confidence.
Courts consider a number of factors when dividing bank accounts during divorce
Money or assets in separate bank accounts (not joint) are not automatically protected in divorce. And when it comes to splitting up bank accounts during a divorce, courts don’t just go straight down the middle—they look at several factors to decide what’s fair.
What they consider 👇
- When the accounts were opened: Did you have the account before the marriage, or was it created together?
- How the funds were used: Were the accounts used for shared expenses or kept separate for individual use?
- Financial dependency: Was one spouse financially reliant on the other during the marriage?
- State laws & General Practice: Each state has its own rules about dividing assets in divorce. Courts aim for fairness, but how they define it can vary.
- Prenups: Do you have a valid and enforceable prenuptial agreement that details how assets are to be divided?
Marital property, separate property, and commingled assets
You’ll hear these phrases often, so let’s break them down and understand how they work together and why they matter –
Marital property belongs to both spouses. Covers anything acquired together during the marriage.
Separate property belongs to one person. Includes things like assets you owned before the marriage, inheritance, or gifts meant just for you.
Commingled assets = what happens when separate property—things you owned individually before marriage—get mixed with marital property during your relationship. Bank accounts are one of these assets.
How does separate property become commingled?
When you step back and look at the big picture, how separate assets become commingled might feel more intuitive than you’d think. Anytime the lines blur—when something that was clearly yours starts being used to benefit your spouse or both of you—it transforms into a shared asset, or “commingled.”
- Bank Accounts: If you had a personal savings account before the wedding but both of you added money to it afterward, it’s no longer just yours.
- Real Estate: Did you own a house before getting married? If marital funds (like shared income) were used to pay the mortgage or make upgrades, it’s now a commingled asset.
- Investments: Did you buy an investment with separate funds but use marital money to improve it? That’s commingling in action.
- Retirement Funds: Contributions made with marital income to a pre-existing retirement account can blur the ownership lines.
When boundaries between “mine” and “ours” fade, 👉 that’s commingling in action. And figuring out who gets what can be tricky—lines are blurred and it can become contentious.
🤫 We’ll let you in on a secret – knowledge and legal guidance are your best allies. Understanding how these assets are handled will give you clarity and confidence, and working with an expert team of professionals will ensure you are taking care of the financial side of your divorce.
Equitable distribution vs. Community property states: How property division works
Equitable Distribution States – In these states, marital assets and earnings are divided equitably—but that doesn’t mean equally. A 50/50 split isn’t guaranteed, fairness is the goal. Courts consider various factors to decide what’s fair, such as:
- The length of the marriage.
- Each spouse’s age and health.
- Your standard of living during the marriage.
Community Property States – All assets and debts acquired during the marriage belong equally to both spouses—regardless of who earned or paid for them. In a divorce, the division is straightforward: property and debt are split 50/50.
⭐️ Click on links above to see what happens in your state.
Ok I understand, now how do I do the thing?
When it’s go time, you have a few paths ahead of you:
- Mediation: A neutral third party helps you and your spouse communicate, negotiate, and reach a mutually acceptable agreement. The mediator doesn’t make the decisions for you but facilitates a productive conversation.
- Hire Lawyers: Lawyers do the heavy lifting and negotiate on your behalf. Each one will try to get the best agreement for their client, usually meeting somewhere in the middle.
- Go To Court: A judge steps in to make the decision for you. While this is a solution, it can be costly, stressful, and emotionally taxing.
- Prenup: If you have one, a valid and enforceable prenuptial agreement (prenup) can override specific community property rules. You’ll look to this first. Talk to your lawyer about this!
We know you want to know more – Check these out 👇
What Happens To Our Retirement Accounts?
I need to regroup – Take me back to My Divorce Journey ToolKit