Traditionally, married couples in Florida and elsewhere have shared everything, including bank accounts. That trend is slowly changing, though, especially as Millennials appear to be redefining traditional marriage. In fact, a recent study found that more than a quarter of all Millennial couples are ditching jointly held bank accounts in favor of separate accounts. This number is more than double the rate at which couples in Generation X and the baby boomer generation opted for separate bank accounts. One reason for this change may be the fact that it is easier for couples to repay each other, especially given the number of apps available to make these transactions quick and simple.
Another major reason for this shift, though, could be that many Millennials saw first-hand the financial challenges brought about by divorce when a couple shares everything. Property division, after all, can have serious financial ramifications for an individual’s post-divorce life. By keeping accounts separate, many find themselves comfortable knowing where they stand, financially speaking, should their relationship come to an end.
However, the truth of the matter is that the fact that just because accounts are held separately does not necessarily mean that they won’t be subjected to the property division process in the event of a divorce. In fact, oftentimes these accounts are deemed marital in nature. This is because in equitable distribution states like Florida, assets acquired during the course of a marriage, including income, are generally considered marital property and therefore subject to property division. One benefit of these separate accounts, though, is that they can provide quick financial relief in an emergency, such as when a divorce petition is filed, and an individual is locked out of other accounts.
Of course, property division is a difficult thing for many Floridians to tackle when they find their marriages falling apart. However, qualified legal professionals may be able to help them gather the evidence and craft the arguments they need to protect their financial interests.