In the event of a break-up, separation or divorce, what happens to the joint current account? Find out how a joint account works and the procedure to follow to report it. We also explain to you what becomes of the joint account in the event of the death of one of the holders. Follow the steps to terminate your joint account.
What is a joint account separation?
When opening a joint account, the two co-holders share the responsibilities of the account in terms of deposits or financial transactions.
In the event of separation from a joint account, this solidarity is broken. Everyone regains their freedom at the banking level.
The joint account can be denounced even before the end of a divorce judgment. The procedure must be started as soon as possible with the bank. Do not take the risk of having your joint account emptied by your ex-partner.
How does the joint account work?
A joint account is a bank account that operates in the name of several holders. These may or may not be related. Generally, it is a couple (spouses, cohabitants or PACS) wishing to share the income as well as the current expenses.
If the joint account includes the words « Sir or Madam », the holders can operate their account under their sole signature. On the other hand, in the event of the mention « Sir and Madam », each of the operations carried out requires the signature of the two holders.
In which cases do we dissociate a joint account?
Generally, couples choose to dissociate when considering a breakup (breaking up of the civil union, divorce, end of cohabitation).
It can also be the result of a new lifestyle choice.
In all cases, the separation process must be carried out as quickly as possible with your bank. Your bank adviser will explain to you the procedure to follow to close your joint current account as soon as possible.
How to do ? Procedures and conditions.
To close his joint account, there is two procedures :
The Closing Mutual Agreement Situation
Both parties agree to terminate their joint current account. They put an end to their solidarity. The account will be closed when all pending transactions have been completed.
The situation of disagreement of one of the co-holders
Anyone wishing to withdraw can send a registered letter with acknowledgment of receipt to the bank. The letter will then be delivered to the second account holder to inform them of the procedure.
Note that this formality is charged by the bank, between 22 euros and 35 euros.
In either case, the presence of both parties is preferable. Nevertheless, it is quite possible to sign the documents for the separation of the joint account later.
You have the possibility of withdrawing the sums that belong to you, leaving enough money to honor your purchases and direct debits.
You will also need to provide supporting documents to your bank to dissociate yourself from your joint account:
- ID :
- tax notice ;
- invoices from organizations to be notified;
- proof of address (receipt, EDF invoice, etc.).
Your banking institution will require you to open a personal account in order to organize yourself and deposit your salary there.
What happens to the account after the unbundling?
The joint account can be modified into an individual account in favor of the person who claimed the separation in the event of a situation of disagreement.
In the event of the death of one of the holders of the joint current account, the surviving co-holder may continue to enjoy his account, provided that one of the heirs of the deceased’s co-holder does not object.
The joint current account will then be transformed into an individual account.