Addressing shared financial accounts early in an Ohio dissolution is one of the most important steps you can take to protect your financial stability. Bank accounts and credit cards often carry years of deposits, payments, and shared spending habits that must be untangled with care. When you take action before the process begins, you give yourself time to understand what you own, what you owe, and what needs to change. Clear financial separation is not only a practical necessity—it is the best way to avoid arguments, confusion, and unexpected problems after the dissolution is finalized. At Garretson & Holcomb, LLC in West Chester Township, we help clients take these steps methodically so they can move forward with confidence.
Bank Accounts as Marital Property in Ohio
Ohio law views most funds acquired during the marriage as marital property, even if they are held in a bank account under just one spouse’s name. Many people are surprised by this. A separate account does not automatically mean separate property. If money earned during the marriage was put into that account, the court generally considers it marital. The same applies to joint accounts—because both spouses have equal access to them, both are presumed to have an interest in the funds.
There are exceptions. Money you owned before the marriage, inheritances, and gifts specifically given to one spouse are treated as separate property. The challenge comes when those funds are mixed with marital money. Once the funds are combined and used for shared expenses, they can lose their separate character. This is why careful documentation, especially early in the process, becomes so valuable. Determining what is truly separate versus what the court will view as marital can shape the entire financial arrangement.
Steps to Take Before Filing
The moment you begin thinking about dissolution, start gathering documentation. Make a list of all bank accounts—joint, individual, savings, checking, money market, or online accounts. Print or download recent statements and, when possible, obtain at least six months of transaction history. This information helps you and your attorney review the current balance, deposit patterns, withdrawals, and any unusual transfers.
If you share a joint account, consider how it is currently being used. Many couples have both paychecks deposited into the same account while also paying bills, groceries, gas, and other household expenses from it. If new joint charges continue during the dissolution process, the division becomes more complicated. Stop adding new joint expenses as soon as you can. Avoid large or irregular withdrawals unless you have discussed the plan with your attorney.
Opening an individual account can be a smart move, especially if you do not currently have one. This gives you a protected place to deposit your paycheck and manage your own spending. Make sure you inform your attorney before closing any joint accounts so there is no appearance of hiding funds or cutting off your spouse’s access prematurely. In many cases, your attorney will recommend waiting until both parties agree on how to handle existing funds before taking that step.
How Credit Card Debt Is Divided
Credit cards create a different type of challenge. Debt accumulated during the marriage is usually considered marital debt, even when the credit card is in one spouse’s name. This means both parties can be responsible for repayment. Marital versus separate liability depends on when the debt was incurred and what it was used for. Purchases made before the marriage or significantly after the separation may be treated as separate. But expenses for food, utilities, family travel, home repairs, or shared needs typically fall into the marital category.
The separation agreement should address these debts directly. You and your spouse may decide that each person keeps the balance on the card in their own name, or you may divide specific cards or specific balances. The agreement should also be detailed. Without clear terms, creditors may still pursue whichever spouse is listed on the account, regardless of what the dissolution paperwork says.
Your credit score can suffer if debt is not handled correctly. Missed payments or accounts left open during a contentious separation often lead to late fees, collections activity, or credit damage that affects both partners. This is why freezing a credit card or stopping new charges until the division is finalized is usually wise. Some couples choose to close joint cards entirely to prevent further spending. Others prefer to leave them open temporarily to maintain stability in bill payments. Your attorney can help you weigh the pros and cons based on your situation.
Best Practices for a Clean Financial Break
The months during a dissolution can be stressful, and shared accounts often become a source of tension. Monitoring activity is vital. Review statements regularly to ensure no one is making large withdrawals, transferring funds, or using the card in ways that could create debt for both parties. If anything looks unusual, let your attorney know immediately. The sooner it is addressed, the easier it is to resolve.
Your attorney can also facilitate the closure or division of accounts. When both spouses agree on how to handle an account, the process usually goes smoothly. But when there is disagreement, having professional guidance prevents misunderstandings and protects your rights. Your attorney can help prepare written instructions, coordinate with the financial institution, or include specific language in the separation agreement.
Future access rights should also be addressed in detail. The agreement should clearly state whether one spouse will have access to the other’s accounts for child-related expenses or transitional support. It should also specify when that access ends. Ambiguity creates unnecessary conflict later.
These steps create a clean break. When the dissolution is finalized, you want to emerge with clarity: clear accounts, clear debt assignments, clear ownership, and a financial structure that lets you rebuild on your own terms.
FAQ
Can I remove my spouse from a joint bank account before filing?
You should not remove a spouse from a joint account without discussing it with your attorney. Doing so can be seen as unfair or financially harmful and may affect negotiations.
Who is responsible for credit card debt in a dissolution?
Debt incurred during the marriage is usually considered marital, so both spouses are responsible unless the separation agreement states otherwise.
Should I freeze credit cards before or after filing for dissolution?
Freezing cards before filing can prevent new charges from being added, but the timing should be planned carefully with your attorney to avoid unnecessary conflict.
For guidance tailored to your situation, contact Garretson & Holcomb, LLC in West Chester Township at (513) 863-6600.
