Help needed on divorce joint account savings.

Michpalms

Hi firstly thanks for reading this post I am desperately after some advice for my friend. This is the situation. Her and her sons dad separated 2 + years ago. All finances were separated, house/joint savings etc. Now 2 years on they are about to proceed with divorce. However they have one savings account left in joint names (nicknamed their sons name but officially still in Mr & Mrs X was never opened as a children's account). This account is where they jointly saved for their son, child benefit, xmas/birthday savings etc is in. My friend would like to keep this account jointly, needing both signatory's to withdraw on agreement for anything they as parents felt necessary for their son together. Ex partner is telling her in order to divorce they cannot keep this account going as will mean they are still financially tied? His suggestion is to split whats in their sons savings, along with any further money in two separate accounts, she looks after one him the other and they withdraw as they see fit. Problem is ex partner is a lot more flippant about what he justifies as dipping into sons account, so shes worried when her son turns 18 hes going to end up with two very different accounts from mum and dad.

So my questions are.....is this correct does this one last joint savings account HAVE to close to get divorced? IF so once divorced could they not just reopen a joint savings account as surely any two consenting adults can have a joint account for various reasons doesn't have to be a couple and would be set as needing both signatories for withdrawals?

Are there not any children's accounts where more than one adult can be signatory so mum & dad can be on there, as Halifax are saying no?
Sorry for the long post but wanted to give all the info. Thanks in advance.

Malthusian

As you describe it, as things stand it's their money, and needs to be fairly split between them along with the rest of the assets of the marriage. The ex is quite entitled to take whatever share he receives after divorce and spend it on whatever he likes.

If it was a Junior ISA or a bare trust account actually in the name of the son then it would be different, but as you've described it, it's their money.

If it's that important to your friend that the ex doesn't spend the "son's" money, she should offer the ex however much of her own money is in the "son's" account in exchange for transferring the "son's account" into her own name, in order to keep things square.

Once divorced they could open a joint account but it sounds like a recipe for pointless drama. What if they fall out and can't agree on what to do with the money? She should just open a children's account under her sole control - and let the ex do the same if he wants to.

Sam_J

What I recommend for your friend is that she asks her husband to agree to move the money into an account in the child's name. That way the money belongs to the child and neither parent can access it. I would recommend a junior ISA. This would still need one of the parents to manage the account until the child reaches 16 and no money can be withdrawn before the child is 18 - and only by the child themselves. Both parents, or anyone else, can make contributions to the JISA.

If the husband is genuine about protecting the money for the child then he should agree to this. If he simply want to keep half of the money - which he is legally entitled to do - then he will likely refuse and I don't think there are any other options. One possibility in this case would be to suggest that he manages the JISA for the child. He may agree to this without realising that he cannot withdraw the money.

missile

Michpalms wrote: »

Hi firstly thanks for reading this post I am desperately after some advice for my friend. This is the situation. Her and her sons dad separated 2 + years ago. All finances were separated, house/joint savings etc. Now 2 years on they are about to proceed with divorce. However they have one savings account left in joint names (nicknamed their sons name but officially still in Mr & Mrs X was never opened as a children's account). This account is where they jointly saved for their son, child benefit, xmas/birthday savings etc is in. My friend would like to keep this account jointly, needing both signatory's to withdraw on agreement for anything they as parents felt necessary for their son together. Ex partner is telling her in order to divorce they cannot keep this account going as will mean they are still financially tied? His suggestion is to split whats in their sons savings, along with any further money in two separate accounts, she looks after one him the other and they withdraw as they see fit. Problem is ex partner is a lot more flippant about what he justifies as dipping into sons account, so shes worried when her son turns 18 hes going to end up with two very different accounts from mum and dad.

So my questions are.....is this correct does this one last joint savings account HAVE to close to get divorced? IF so once divorced could they not just reopen a joint savings account as surely any two consenting adults can have a joint account for various reasons doesn't have to be a couple and would be set as needing both signatories for withdrawals?

Are there not any children's accounts where more than one adult can be signatory so mum & dad can be on there, as Halifax are saying no?
Sorry for the long post but wanted to give all the info. Thanks in advance.

Your friend's OH suggestion to close the account and open two new i.e. for mother and father contributions makes good sense. Many of us have several savings accounts.

xylophone

How old is the child now?

Michpalms

He is 9 years old.

xylophone

He is 9 years old.

He will have a CTF.

It might be worth considering making the maximum contribution from the parental joint account to the CTF in the "CTF year" then transferring the CTF to JISA and making the maximum contribution from the parental joint account to the JISA in the current tax year.

https://www.skintedmintedmum.co.uk/minted-blog/how-to-transfer-a-child-trust-fund-ctf-to-jisa-with-a-double-scoop-of-tax-allowance.html

The balance might be transferred into a child account with both parents as trustees and gradually transferred into the JISA.

Mnd

Change the money to the child's name and Invest as above

ViolaLass

Would it matter if the kid turned 18 and got very different accounts from mum and dad? Mum needs to let go.