How to close a joint bank account when you're going through a breakup or divorce
When you close a joint bank account, the co-owners of the account must both be present to close the account or have written authorization.
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- Two or more people have equal ownership over a joint bank account.
- To close a joint bank account, co-owners need to be present at a bank or have written permission.
- If you're going through a divorce, separating finances may be more complicated.
If you're going through a breakup or divorce, closing a joint bank account may be an important step for completely separating your finances.
Closing a joint bank account may not be as simple as closing an individual bank account, though. We'll walk you through the steps of closing a joint bank account and provide tips on what you can do after.
Can one person close a joint bank account?
A joint bank account usually cannot be closed by one account owner unless they plan to remove themselves from an account or have permission from the other person.
This is because joint bank account owners have equal ownership over the account. A bank account owner may be able to withdraw, deposit or transfer money independently, but if they plan to change account ownership that change needs to be authorized by all owners.
To request an account closure, financial institutions will usually also have you fill out a form that requires each owner's signature.
How to close a joint bank account
If you've decided to close a joint bank account, here are three steps you can take.
Come to an agreement on closing the account
Ideally, before you close the account, the account owners need to agree on when to close the account and how the deposited money will be distributed.
"If you have a joint account with someone, say it's a bad breakup, that person could take all the money out of that joint account, and you have no recourse. There's nothing you can do because it was a joint account," points out Niv Persaud, CFP® professional and founder of Transition Planning & Guidance, LLC.
If you're going through a divorce, closing a joint bank account may take more time but also provides some legal protection since neither account owner can take out money from the bank account. You'll have to wait until divorce papers are finalized before accessing and distributing funds.
"Your divorce decree — your final document after the divorce — that's what's used so you can easily close an account," says Persaud.
Close the bank account
At some financial institutions, both of you will need to be physically present at a branch to close the account. Others may permit one person to close an account, but you may need to have a written document signed by the other person.
If you've gone through a recent divorce, you'll provide your divorce decree to help close the account. Otherwise, you and the other account owners will only need to fill out an account closure form.
Open a new bank account
If you don't already have an individual bank account, it's recommended that you open an account for yourself. You could open an individual bank account at the same bank or choose another financial institution.
Opening a bank account usually requires two forms of US IDs, proof of address, your Social Security number, and some money for a minimum opening deposit. If you're not a US citizen, you can also look at our list of bank and credit unions that accept alternative forms of ID.
How to remove yourself from a joint bank account
If you decide to remove yourself from a joint bank account, the remaining account owner will have full control of the account and any money left deposited into the account.
You can visit a nearby branch and close an account by filling out a form. You may be asked to present two forms of identification to verify your identity.
What to do after you've closed a joint account
Persaud says in a relationship, you may have shared expenses for essential expenses. However, once you're on your own, you may need to make adjustments to your spending.
Two spending areas you may want to consider looking over your essential expenses and discretionary expenses. You can use a spreadsheet to create a budget or a budgeting app to help you examine your income and stay on top of your expenses.