bankers draft question

acsrjsk

Hi

Quick question please:

If I take a bankers draft from my account in Bank A for £5000 and then deposit the bankers draft in Bank B, where I also have a savings account,

a. Will the statements from Bank B show that the £5000 was deposited from Bank A?
b. Will the statements from Bank A show that £5000 was transferred to Bank B? in other words would this be equivalent to taking cash from Bank A and depositing to Bank B where there is no trace?

Many thanks

Mistermeaner

Would love to know why you need to know this

If you're trying to hide what you're doing cash leaves few traces but anyone who looked at your accounts would be able to match transactions even with cash.

acsrjsk

If you must know yes I am hiding. Part of the divorce proceedings. My wife is trying to get greedy. Won't go into full story here.

Please would you or someone mind telling how you can trace a secret account with cash or even bankers draft? I mean in the example that I have given above - you can't tell If I have an account in Bank B if Bank A statement doesn't show it right?

ERICS_MUM

All "non-cash" banking transactions can be tracked/traced. Using your example, the draft would be allocated a reference number by your bank which would be shown on your statement to prove you bought it. The draft can be traced through the cheque-clearing system to the bank/branch/account into which it was paid. The draft itself or an electronic copy would be retained by your bank and the details of the bank and branch it went to are on the back.

A cash withdrawal would show on your statement but thereafter could not be traced unless the person looking for it knew about the other account. That would work only if the cash were paid into the account!

Mistermeaner

The trouble is the cash withdrawals will show on the known account and the obvious question would be asked 'where has that cash gone?'

I've been where you are (through a divorce) - not pleasant and my thoughts are with you.

Just be aware that your ex will if she wants be able ultimately to get full access to your affairs as will a judge - any attempts to hide / deprive wealth will be taken into account in settlement. Works both ways - if your wife goes nuts on a joint credit card that will be seen as hers in any settlement.

Judges particularly look at the behaviour of parties once proceeding start

acsrjsk

Thanks to both. I got the divorce peition yesterday.

We dont have a joint account. My father who gave me money decades ago and I have been keeping that money. I just don't that taken into divorce settlement which is why I am trying to hide it.

I will be speaking to a lawyer about this sort of matter soon, but, I was wondering if I sent the money to my dad's account in Australia and show them that I no longer have the money would this still be a unreasonable behaviour?

Many thanks

Mistermeaner

Perhaps - it's difficult to say

Alot depends on how long you were married and who brought what into the marriage.

E.g. If you had this money before you were married and its always been separate from the 'marriage pot' there is a fairly good argument to say that it should not be considered as a joint asset and therefore not considered in any division of assets settlement.

However: if you've been married for 30 years and your dad gave you this money 15 years ago there would be a strong argument to say its part of your joint assets.

So much depends on circumstances.

It is possibly better to be open about its existence but state a case as to why it should not be considered part of the pot - risk in trying to hide it is that you get caught and then its more difficult to explain your way out. Does your wife know it exists?

Easy to say I know but the best outcome generally for all parties is to come to an amicable settlement on everything - this obviously involves horse trading; you keep your fathers money but she gets the BMW etc. If you go into dispute the lawyers just get richer.

At one stage I paid my wife cash to write a letter to the judge declining a hearing before decree absolute - was only able to do this as we were 'friends'.

ERICS_MUM

I'm probably stating the obvious here but please be careful with your financial affairs. No matter how friendly the soon-to-be-ex partner seems, once money enters the equation they can turn into Frankinsteins monster. Ditto if a new partner pops up, especially if it's the ex husband's new girlfriend. No doubt your wife is getting similar advice from her friends & family.

I supported my brother through his divorce 8 years ago and it took at least 3 to get through all the nonsense I've mentioned.

If I had the opportunity I would advise engaged couples to build their own nest egg unbeknown to the spouse, 'just in case'. Not very romantic, maybe even outrageous !

acsrjsk

Hi

Thanks -

The savings account that I have is not known to my wife. However, I have a current account which I used to transfer money to my wife on a monthly basis. Also from this current account I have been transferring money into my savings account. I am pretty sure her soilcitor will be asking for bank statements and I intend to produce my current account and not my savigns account,

If I showed the current account and not the savings account, I think that the statements has transactions going into my savings account and the solicitor probably want details of that savings account too (which has also money given by my family). This is why I pre-empting the savings account using cash and transferring into another bank trying not to make it tracable.

Do you think its the right thing to do? Also to mention there are no kids in the marriage

Thanks

Mistermeaner

I doubt you'll get away with hiding it as its existence will be obvious to your wifes solicitor from your current account.

If you then provide a statement from your savings account it will be obvious that you have emptied it.

I would say your wife has a right to a claim on some of this money : the % she is entitled to will depend on how much existed pre-marriage, how much was put in during the marriage, and how long you have been married. Additionally what other assets are under consideration; e.g. if you're walking away from £50K of equity in the house and wanting to keep £10K of cash that's probably pretty reasonable. If you don't own anything between you (renting) and you've supported your wife financially for the last 30 years then hiding £10K is not reasonable.

As above it all depends on so much. Having no kids makes it a bit easier.

As a rule of thumb look at the assets built up during the course of the marriage (exclude anything each of you had before) and split them 50:50 - regardless of who put what in (this is tricky if e.g. she moved into a house you partially owned on a mortgage which has since appreciated in value and had some of the mortgage paid off). Next look at how that 50:50 split will leave you both; will she be able to house and feed herself? does she work? Do you work? What are your pension arrangements?

Mistermeaner

On basis of what you describe it looks like a straight 50:50 to me - you each keep your savings and pensions and clean split in terms of maintenance payments (i.e you each pay each other zero)

The house sounds like the key thing - she paid deposit, you paid mortgage so 50:50 of equity sounds fair. Trick as you point out is releasing that.

If she wants to buy you out she needs to remortgage to release your equity - if she cant do that can you? If neither of you can buy the other out the only answer is to sell it and split the equity after.

Can you advise your earnings, her earnings, value of house, value of equity and approx value of each of your savings then I can give you a view.

Also is there anything else of value knocking around? do you both have cars, expensive watches, a boat, a caravan etc?