Bank Accounts & Cash Equivalents - How to Value and How to Divide

Examples of bank accounts and cash equivalents: checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs)

Key features of bank accounts and cash equivalents:

• Liquidity
• Safety
• Interest Earnings
• Accessibility
• Stability

Most common types of banks accounts and cash equivalents:

• Checking Accounts
• Savings Accounts
• Money Market Accounts
• Certificates of Deposit (CDs)
• Health Savings Accounts (HSAs)

First: Gather the Facts

• Identify the accounts, ownership and value
• Balances are readily accessible
• Interest rates and market conditions may impact their overall value
• Statements or online values should provide the needed information

Second: Understand the Law

• Bank accounts and cash equivalents may be held jointly or individually
• In an equitable state:
  • Titling of a bank account or cash equivalent may not matter
  • More about how the account was funded
  • Marital funds earned/saved during the marriage, typically shared equally
  • Non-marital from prior to marriage or gift or inheritance, typically stays with individual
• In a community property state:
  • Joint accounts are typically subject to equal division
  • Individual accounts, depending on how funded, may be considered separate property
  • Separate assets from prior to marriage or gift or inheritance, typically stays with individual
• Consider fluctuations in accounts and timing of divisions
• Operating accounts may need separate consideration

Special Considerations

• Commingled Funds and Tracing
• Complex Ownership Structures
• Offset by Debts