Do you want to convert your joint account into an individual account? We explain how to do it easily.
The joint account is an effective solution for better managing household expenses. It is therefore normal that most couples choose this option. However, managing a joint account can quickly be a source of quarrels between spouses, PACS partners or cohabitants! On the other hand, in the event of separation, it is advisable to disassociate oneself from the joint account by closing it. In this case, the joint account becomes an individual account. But other reasons may lead you to resort to this solution. Find out how to convert a joint account into an individual account. And also inform yourself about all the specificities of this type of account before opening one!
The particularities of a joint account: principle and operation
Who are the holders? Conditions
First, what differentiates a joint account from an individual account is the number of holders. Indeed, unlike the individual account, the joint account operates in the name of at least two holders.
Generally, it is a married couple, PACS or cohabiting, or two members of the same family (parent, brother or sister…). However, it is possible to open a joint account with an unrelated person.
And you can also open a joint account with several people. Indeed, there is no limit number, except if the bank has set a ceiling.
Types of possible joint accounts
Then, you have the option of opening several types of joint accounts. In general, it is a joint current account. But you can open a joint savings account, a joint securities account and even a joint term account.
On the other hand, regulated savings accounts (PEL, livret A, etc.) as well as equity savings plans cannot be joined, but only individually.
The different options and mentions
Finally, be aware that you have three different mentions.
The first, “Sir/Madam or Sir/Madam” is the most common. In this case, only a signature of one of the holders is sufficient to carry out the current operations.
The second, “Sir/Madame and Monsieur/Madame” implies the signature of all holders to carry out banking operations.
Finally, the last, “Mister/Madam and/or Madam/Mister” turns out to be hybrid. This formula makes it possible to carry out certain operations with a single signature while others require, on the other hand, the agreement of all the holders.
Opening a joint bank account: the procedure to follow
To open a joint account in a bank, there is nothing very complicated. All you have to do is make an appointment with an advisor to proceed with the opening. Please note that all holders must be present, with proof of identity and proof of address.
At the end of the meeting, you must each sign an account agreement and indicate a common address to facilitate mailings.
Note that you also have the option of designating one of the holders as the sole person responsible for the banking ban in the event of an incident. This protects you in the event of filing at the Banque de France.
Please note: all banks may charge fees for maintaining a joint account. The pricing applied must be indicated in the price plate on paper or online.
Convert a joint account into an individual account: how to proceed ?
Note that it is quite possible to transform a joint account into an individual account. To do this, you must contact your bank advisor. However, it must be understood that this operation leads to the separation of your joint account, in other words its closure.
In addition, when transforming a joint account into an individual account, two situations may arise: the situation of mutual agreement to close or the disagreement of one of the co-holders.
The Closing Mutual Agreement Situation
This is the most favorable situation. Indeed, the holders of the joint account agree to put an end to it.
In this case, the joint account is closed as soon as all the operations in progress are carried out. You can then open an individual current account to reorganize your budget and direct your salaries.
In case of disagreement of one of the holders
If the co-holder does not agree to terminate the joint account, you must send a registered letter with acknowledgment of receipt to your bank.
Then, the establishment will position itself as an intermediary by delivering the letter to the co-holder in order to inform him of the procedure.
To note : this formality is a service invoiced by the bank.
The documents to provide
In the case of a current account separation, you must present supporting documents:
- ID ;
- tax notice ;
- list of organisms to notify;
- proof of address.
Withdrawal of money from the joint account
Then, as soon as the separation procedure is launched to transform the joint account into an individual current account, you can withdraw the sums that belong to you.
In the event of divorce or breach of PACS, you do not have to wait for the judgment. You can already make the withdrawal. This is even recommended so that your ex-spouse does not empty the joint account.
However, be sure to leave enough money to pay all outstanding debts.
Opening a current account
On the one hand, the joint account will be transformed into an individual account in favor of the holder who initiated the separation procedure (in the event of disagreement).
On the other hand, even in the event of a situation of mutual agreement of closure, your bank will require you to open an individual account in order to reorganize your finances.
Transformation of a joint account into a current account in the event of death
What happens to a joint account in the event of the death of the co-holder? Be aware that the surviving holder can continue to enjoy their account. And he has no particular steps to take with the bank.
In the event of a single survivor co-holder, the joint account is automatically transformed into an individual account. However, the heirs of the deceased holder or the notary must not expressly oppose it. In which case, the joint account would be blocked. But this is still a rare situation.
For its part, the bank sends the list of existing sums to the Department of Tax Services. It has a period of 15 days from the notification of the death to do so.
The remaining sums are then divided between the heirs, unless there is a defined matrimonial regime or a will.
More information about the joint account:
- How to close a joint account without the agreement of the spouse?
- What happens to a joint account in the event of death?
- Joint account separation: how to do it?
- Can we have several joint accounts?
- How to open a joint account while being banned from banking?
- How to manage a joint account?