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What Happens to Savings Account When You Separate or Divorce?

savings accounts separation divorce

Are Your Bank Accounts Considered Marital Property?

In Ontario, it’s common for each spouse in a marriage to own property, including “bank accounts”, and debts in their own name. Entering into marriage with pre-existing assets, such as a robust savings account balance, does not automatically mean these assets become “joint accounts”. This remains separate property, solely belonging to the named spouse.

For example, if one spouse enters the marriage with a considerable savings balance, these funds are considered a ‘date of marriage‘ deduction. This reduces their “net family property” on separation, which might impact the “divorce process”.

Net family property measures the financial progress or gain made during the marriage, from the date of marriage to the date of separation. Any significant value increase in a spouse’s assets is considered “community property”, subject to division or equalization.

It’s crucial to note that not all separation or divorce proceedings result in the redistribution or equalization of the spouses’ property. The “dividing assets” process largely depends on the “parties involved” and their “financial goals”. You and your spouse may opt to maintain “separate accounts” and keep your assets untouched.

Regardless of the decisions made, financial disclosure is a crucial step during the divorce process. Keeping accurate records of each spouse’s financial position at the date of marriage and date of separation greatly aids in calculating the net family property. Bear in mind that this information can be complex, and it’s often wise to consult with “divorce lawyers” or “financial experts”.

Understanding these aspects of marriage and divorce is essential, whether you’re opening a “joint bank account”, considering a “prenuptial agreement”, or navigating a “divorce settlement. Records of your and your spouse’s financial position at the date of marriage and date of separation, will help greatly with calculating the net-family property.

Table of Contents

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More about your personal savings and divorce

Your savings account records/statement will be required to satisfy financial disclosure and informed consent requirements while negotiating a divorce/separation settlement.

Making your Savings financial disclosure

what-you-need-to-know

Savings Account Statement

Your Savings Account Report offers you a monthly view of your account. It contains your interest charged, balance, investments, and any interest received during the reporting period. There are several forms in which you can get your Savings Account statement with the financial disclosure criteria; several are normally fast and easy to obtain and fill out.

Mail

The bulk of deposit-taking organizations submits monthly statements via mail. The paper document includes the applicable account documents, such as balance, expenses, and the amount of interest received.

These statements are made accessible on the same day per month, so if you haven’t collected yours by this date, don’t hesitate to contact your financial institution for a copy. It is always necessary to contact your financial institution whenever your address changes to ensure you collect your statements at the new address.

E-Statements

Some financial institutions offer an electronic way of delivering your statement instead of paper. Instead of delivering a written letter, the financial firm would email the address you choose. The email may contain a statement as an attachment or a link to access the statement online. The e-statement shall include the same material as the paper declaration.

Online Banking Online

You can download your present and past accounts electronically when you sign up for electronic banking through a financial institution. You sign on to the lender’s site using the username and password of your preference.

Normally, while on the web, you choose the “Preview Statements” button, and a list of relevant statements should appear on the page. You press the one you want to view and open it in a new browser, which is often available as a .pdf format.

You can read, print, or transfer the file to a hard disk.

In-Person

When everything else fails, you should go to the address of the financial firm and order a copy of the document. Because of privacy rules, you may need an ID to show that you are the account holder. So, after your name has been checked by the representative, they will print a copy for you. While you are there, it’s smart to test the delivery system for your statements and adjust them to match your preferences better.

Saving financial disclosure Documents Details

divorce financial disclosure savings account

To obtain this document, you may need these dates:

  • Inclusive date of marriage
  • Inclusive date of separation
  • The current date that you are obtaining the document.

Obtaining a digital copy of this document:

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How Do I Get Digital Copy of This Document

You can download an electronic copy (pdf) to your laptop from several online outlets. You may also use “Print to PDF” for most up-to-date browsers to print to a document.

How To Scan Your Hard-Copy Document

You may do so either from your own home or office scanner or even with Staples Company Depot.

Final Thoughts

Navigating the financial intricacies of divorce can be daunting, especially when dividing savings accounts and other family assets. The family law regime in Canada provides a framework for dividing assets, but each case is unique. It’s crucial to list all purchases, including retirement savings, and understand their net worth. This is where expert advice from a financial professional can be invaluable.

Legal advice is equally important. A divorce lawyer can guide you through the family court system and help you understand how laws apply to your specific financial investment and matrimonial regime. In some cases, legal separation may require an equalization payment, so keeping a detailed credit report and being aware of both spouses’ credit scores is essential.

One spouse may be required to pay spousal support, impacting your retirement accounts and other investments. It’s advisable to consult a third party for financial planning, especially regarding complex matters like life insurance policies or personal loans. A written separation agreement can protect both parties and ensure a fair share of assets.

Remember, marital status, whether married or in a common-law relationship, will affect how assets are divided. Information is your best tool, so always seek legal and financial advice before making decisions. A marriage contract can be a proactive step for those looking to keep their credit score intact and protect their investments.

In conclusion, divorce is more than just a legal case; it’s a life-altering event that requires careful planning and advice from various experts. Whether dealing with credit cards, insurance policies, or retirement accounts, ensure you’re well informed and prepared for the journey ahead.

At DTSW:

We understand that navigating the financial intricacies of a divorce can be overwhelming. The division of assets, including savings accounts, is a complex process that requires careful consideration and expertise.

At Divorce The Smart Way, we are here to help you through this challenging time. Our team of professionals has extensive experience in handling the financial aspects of divorce. We understand the importance of fair and equitable distribution of assets, and we are committed to helping you achieve your financial goals during and after the divorce process.

Whether it’s understanding your savings account statement, dealing with joint accounts, or figuring out how to divide assets acquired during the marriage, we have the knowledge and resources to guide you.

We can help you understand the difference between marital property, community property, and separate property and how these can impact your financial future.

We know every situation is unique, and we are here to provide personalized guidance tailored to your circumstances. We can help you navigate the complexities of withdrawing money, setting up separate accounts, and dealing with retirement and other assets of significant value.

We understand that this is a difficult time for you, and we want you to know that you are not alone.

Our team is here to support you every step of the way, providing the expertise and understanding you need to navigate this process confidently. We invite you to Schedule a Get Acquainted Call with us.

This is an opportunity for us to understand your situation better and for you to learn how we can assist you in achieving a smart divorce. Let us help you navigate this journey the smart way.

Articles that may interest You!

How to handle finances during separation?Ken Maynard CDFA, Acc.FM2023-09-26T17:53:33-04:00

Handling finances during separation in Ontario involves creating a budget, separating joint accounts, and consulting financial experts like a Certified Divorce Financial Analyst.

Can a joint bank account be contestedKen Maynard CDFA, Acc.FM2023-09-26T17:52:37-04:00

Yes, either party can contest the division of a joint bank account in Ontario, but it usually requires legal proceedings to resolve.

Can I open a new bank account during a divorce?Ken Maynard CDFA, Acc.FM2023-09-26T17:51:14-04:00

Yes, you can open a new bank account during a divorce in Ontario, but it’s advisable to inform your spouse and legal counsel to avoid complications.

How are bank accounts split in a divorce?Ken Maynard CDFA, Acc.FM2023-09-26T17:50:09-04:00

In Ontario, bank accounts are typically subject to the equalization process, which aims to divide marital assets fairly.

How to separate finances during separation?Ken Maynard CDFA, Acc.FM2023-09-26T17:49:05-04:00

In Ontario, it’s advisable to close joint accounts, open individual accounts, and consult a Certified Divorce Financial Analyst for a comprehensive plan.

Can I empty my bank account before divorce?Ken Maynard CDFA, Acc.FM2023-09-26T17:48:15-04:00

No, doing so could be considered financial misconduct under Ontario law and may affect the equalization process.

Can you ask the bank if your spouse has a bank account in divorce?Ken Maynard CDFA, Acc.FM2023-09-26T17:47:26-04:00

No, banks in Ontario are generally prohibited from disclosing personal information without consent. You may need a court order.

Are separate bank accounts marital property?Ken Maynard CDFA, Acc.FM2023-09-26T17:46:12-04:00

Yes, under Ontario law, separate bank accounts can be considered marital property and may be subject to equalization.

Is my wife entitled to half my savings?Ken Maynard CDFA, Acc.FM2023-09-26T17:45:10-04:00

No, in Ontario, the division of property is based on the concept of “equalization,” which may not necessarily mean a 50/50 split of savings.

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Important Dates in Separation and Divorce | Related Time Limitations

Important Dates in Separation and Divorce | Related Time Limitations

Important Dates in Separation and Divorce | Related Time Limitations

The Date of Separation is just one critical date in separation and divorce. There are several other important dates including the date of marriage…

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Get past the financial disclosure for a Soft Landing

More About financial disclosure:

financial disclosure Form 13.1Financial disclosure is the process by which both sides (you and your spouse) exchange reports about income, property, and debts of the other person.

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About the Author:
Ken Maynard CDFA, Acc.FM

I assist intelligent and successful couples in crafting rapid, custom separation agreements that pave the way for a smooth transition towards a secure future. This efficient process is achieved in about four meetings, effectively sidestepping the excessive conflicts, confusion, and costs commonly linked to legal proceedings. Clients have the flexibility to collaborate with me either via video conference or in-person through a DTSW associate at any of our six Greater Toronto mediation centers, located in Aurora, Barrie, North York, Vaughan, Mississauga, and Scarborough.

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Ken Maynard CDFA, Acc.FM2024-06-07T17:17:56-04:00

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