A joint bank account is a big dedication, even for a wedded couple. A joint account gives both partners equal access to the cash. Without appropriate interaction and planning, couples can quickly spend beyond your means and overdraft. Nevertheless, leaving a joint account is a challenge. At many banks, both parties should exist to close a joint account.
What Is a Joint Account?
A joint account is an account that could be accessed by two people. With a joint account, both celebrations could put money in, write checks and, possibly most importantly, take cash out. In order to set up a joint account, you and your spouse need to open the account together. It’s also feasible to add your spouse to your account as a licensed user. Once you’ve a joint account, it’s extremely hard to limit your spouse’s gain access to. Sometimes, you could need two signatures on checks or withdrawal strips. But this is uncommon and you’ll have to set it up with your bank specifically.
Closing a Joint Account
You can not close a joint account unilaterally. In order to remove one person’s name from an account, you’ll have to go to the bank together and show identification. Some banks won’t permit you to ever take one name off a joint account– you’d need to close the account and open a brand-new account.
If your partner passes away, you’re entitled to all of the cash left in the account. In that case, you’d also be able to close the account. You’ll need to bring a death certificate to the bank to show your spouse has actually died.
Though you couldn’t close a joint account without a partner present, you could take your own name off the account. If you’re getting a divorce, this precaution will shield you from overseeing the account or paying late fees if your spouse is constantly over-drafting. For most banks, you’ll have to go into the branch personally, prove your identification, then sign some documents. Additionally, either owner of the account could possibly take out all the money and open a new checking account.