Why Your Separate Bank Account is Part of Your Divorce

You might think that the bank account held solely in your name is yours and yours alone, especially if you’ve maintained it separately from any joint accounts. However, in the context of an Illinois divorce, that assumption is usually incorrect. Your separate bank account is still probably part of your marital estate.

 

How the Law Evolved Around Separate Bank Accounts

 

For many generations, societal norms often dictated that women did not participate in the workforce outside the home to the same extent as men. As a result, financial independence for women within marriage could be limited, and individual bank accounts were less common. If Illinois law were to allow one spouse to retain all assets held solely in their name, regardless of when those assets were acquired, it would have historically placed women in a precarious and impoverished position upon divorce. It still often does.

 

Illinois law, recognizing the nature of marriage as a shared endeavor, has evolved to prevent such inequitable outcomes. The principle of marriage as a “common enterprise” is a cornerstone of how assets are treated during divorce proceedings. This means that the law views the efforts and contributions of both spouses, whether financial or otherwise, as contributing to the overall marital estate.

 

Therefore, the key factor in determining whether your seemingly separate bank account is subject to division in an Illinois divorce isn’t just whose name is on the account. Instead, the question is when and how the funds in that account were accumulated. In 2025, the legal principle remains largely the same: if the money was earned or deposited into that account during the marriage, it is highly probable that the account will be considered part of the marital estate, regardless of whether your spouse ever had access to it or if their name is on the account.

 

Why Separate Bank Accounts Are Usually a Marital Asset:

 

• Recognizing Shared Contributions: The law acknowledges that both spouses contribute to the marital partnership, even if their contributions manifest in different ways (e.g., one spouse working outside the home while the other manages the household and child-rearing). The earnings of one spouse during the marriage are seen as a product of this joint enterprise.

 

• Preventing Hidden Assets: By considering assets acquired during the marriage as marital, regardless of title, the law aims to prevent spouses from hiding assets in individually held accounts and claiming them as solely their own during divorce.

 

• Combating Financial Abuse: This principle also helps to protect spouses who may have been financially controlled or excluded from financial decision-making during the marriage. It ensures that one spouse cannot unilaterally control and then retain all assets accumulated through marital efforts.

 

Consider this example: If you worked throughout your marriage and deposited your paychecks into your separate bank account held solely in your name, those funds are likely considered marital property. You paid bills out of it right? Even the bills for things that benefitted you both, like the electric bill. Similarly, if your spouse did the same with their earnings in a separate account, that account would also likely be part of the marital estate.

 

TL;DR: Your Separate Bank Account in Illinois Divorce

 

Don’t assume your individually held bank account is yours to keep without disclosure in an Illinois divorce. If the funds were earned or deposited during the marriage, the account is likely considered marital property due to the legal view of marriage as a common enterprise. This prevents financial inequity, especially considering historical gender roles, and stops spouses from hiding assets. The law focuses on when the money was accumulated, not just whose name is on the account. Full financial disclosure of all accounts is vital for a fair divorce process in Illinois.

 

FAQ About Separate Bank Accounts

 

Q1: If I have a bank account only in my name, is it automatically considered mine alone in an Illinois divorce?

 

A: Not necessarily. In Illinois, the key factor isn’t just whose name is on the account, but when and how the funds were accumulated. Money earned or deposited during the marriage is likely considered marital property, even if it’s in an account held solely in your name.

 

Q2: Why does Illinois law often consider a “separate” bank account to be marital property if the funds were earned during the marriage?

 

A: Illinois law views marriage as a “common enterprise,” meaning that the efforts and contributions of both spouses during the marriage contribute to the marital estate. Earnings during this time are seen as a product of that joint effort, regardless of which spouse directly earned the money or where it was deposited. This also helps prevent spouses from hiding assets.

 

Q3: What if I had a bank account before I got married, and I continued to deposit my earnings into it during the marriage? Is that entire account considered marital property?

 

A: Not necessarily. The portion of the account that existed before the marriage is likely considered your separate property. However, any funds earned and deposited into that account during the marriage are likely considered marital property and subject to division. Tracing the funds can be important in these situations.

 

Q4: What should I do with my separate bank account if I am considering or going through a divorce in Illinois?

 

A: It is important to be transparent and disclose all of your financial accounts, including those held separately. Failing to do so can have legal consequences. It’s best to discuss your specific situation with an attorney who can advise you on how your accounts will likely be treated under Illinois law.

 

If you are in the Metro East area and your marriage is ending, reach out to my office. I would love to use my 20+ years of legal experience to help you end your marriage peacefully.

 

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. It is essential to consult with an attorney to discuss your specific situation and legal options