Is Taking Money From a Joint Account Stealing in Australia?

When a couple separates, emotions can run high, and managing shared finances can become a contentious issue. One of the most frequently asked questions during a separation we hear is “is taking money from a joint account stealing in Australia?” The answer to this question depends on several factors, including the ownership of the funds, authorisation to access the account, and the legal context in which the money was withdrawn.

In this article we’ll explore the legalities of accessing a joint account, what happens if one party takes all the money, and how Queensland’s legal system can help protect your interests.

 

How Do Joint Accounts Work?

A joint bank account is shared between two or more people, giving all account holders equal access to withdraw, deposit, and manage funds. This arrangement is common in marriages, de facto relationships, and business partnerships. While joint accounts can simplify financial management, they also create the potential for conflict, particularly if one party accesses the funds without the agreement of the other account holders.

Legally, all account holders typically have equal ownership of the funds in a joint account unless specified otherwise in the account agreement. This means that any party can withdraw money at any time, even without informing the other account holder(s). However, this doesn’t mean such actions are free from legal consequences in every situation.

 

Can You Take Money From a Joint Account During Separation?

Joint accounts are particularly contentious during separations and divorces. If one party withdraws a significant amount of money from the joint account, the other party may feel unfairly disadvantaged. But is taking money from a joint account considered stealing in Australia? While Queensland law does not classify this as theft, it can still impact property settlements.

1. Legal Access Doesn’t Always Mean Fair Access


While joint accounts give both parties equal access, the court considers the financial actions of each party when determining what is fair and equitable in property settlements. If one party withdraws a significant amount, it may be seen as an "early distribution" of their share of the property pool and could be adjusted during the settlement process.

2. Purpose of Withdrawal

The purpose for which the funds are used can influence how the court addresses the issue. For example:

  • Responsible Use: If the funds are used to pay for necessary expenses like mortgage repayments or children’s needs, the court may view this as reasonable.
  • Irresponsible Use: Spending the money on luxury items, holidays, or unrelated personal interests may be considered an unfair depletion of joint resources.

3. Impact on Property Settlement

During separation, the court views the property pool holistically, including joint accounts, individual accounts, and other assets. If one party drains a joint account, the court may "take it into account" to ensure a just and equitable division of assets.

 

What Happens If Your Ex Withdraws All the Money?

If your ex-partner empties a joint account during separation, there are legal remedies available under the Family Law Act 1975 to protect your financial interests.

These include:

  • Interim Orders: The court can issue interim orders requiring the funds to be returned or placed in a neutral account, such as a solicitor’s trust account, until the property settlement is finalised.
  • Adjustments in Property Settlements: The court may adjust the property settlement to account for the withdrawn funds. For instance, if one party spends money irresponsibly, the court may reduce their share of the remaining assets.
  • Asset Tracing: If the money is used to purchase assets, such as a car, those assets can be included in the property pool and divided accordingly.

 

Accessing Individual Accounts: Is It Legal?

Joint accounts provide both parties with equal access to funds, but the rules are different for individual accounts. If one party accesses their ex-partner’s personal account without permission—such as by using shared passwords or PINs—this is unauthorised and could be considered theft under criminal law. It’s important to avoid taking such actions, as they can lead to serious legal consequences.

 

Protecting Joint Assets During Separation

To safeguard joint finances during separation or divorce, consider the following steps:

  • Setting Clear Terms: Agree with the other account holder(s) on how the funds will be used.
  • Using Separate Accounts: For personal expenses, maintain separate accounts to prevent confusion or misuse of joint funds.
  • Freezing Accounts During Separation: If you are going through a separation, freezing the joint account can help safeguard the funds until a formal agreement is reached.

 

What Should You Do if Money Has Been Taken Without Consent?

If money has been withdrawn from a joint account without your agreement, there are steps you can take to address the situation:

  1. Communicate with the Other Party: In some cases, a discussion may help resolve the issue without legal intervention
  2. Review the Account Agreement: Check the terms and conditions of the joint account to understand your rights and whether the withdrawal breached any conditions.
  3. Seek Legal Advice: A family lawyer can help you assess your options, whether the issue arises during a separation or a broader financial dispute.
  4. Contact the Bank: Notify your bank of the dispute and consider freezing the account to prevent further unauthorised withdrawals.
  5. Apply to the Court: If necessary, you can apply for a court order to protect the remaining funds or recover the money taken.

 

Does Taking Money From a Joint Account Affect Property Settlement?

Yes, withdrawing money from a joint account during separation can affect the property settlement process. The court’s primary goal is to ensure a fair and equitable division of assets. To achieve this, the court may consider:

  • The Purpose of Withdrawals: Reasonable expenses may not impact the settlement, but frivolous or excessive spending can lead to adjustments.
  • The Financial Impact on the Other Party: If one party is left at a financial disadvantage due to the withdrawal, the court may compensate them by adjusting the asset division.

 

Final Thoughts: Is Taking Money From a Joint Account Stealing in Australia?

While taking money from a joint account is not typically considered theft under Australian law, it can have significant legal and financial implications during a separation. The courts aim to ensure fairness by addressing withdrawals and spending as part of the overall property settlement process. By understanding your rights and seeking legal advice, you can protect your interests and work towards a just resolution.

At Pullos Lawyers, we specialise in family law matters, including property settlements, financial disputes, and separation advice. Our compassionate and experienced team is here to guide you through the complexities of joint financial agreements and ensure your interests are protected. Contact us today at (07) 5526 3646 or via our contact form to schedule a consultation. Let us help you navigate the legal and emotional challenges of your situation with confidence and clarity.