What Happens to My Savings Invested in My Husband’s Name?

If your savings or other assets are invested in your husband’s name, the division of those assets during a divorce will depend on several factors, including the laws in your state, the nature of the investment, and whether the savings were considered marital property or separate property. In many cases, assets held in one spouse’s name may still be subject to division as part of the overall marital estate. Here’s how these savings might be treated:

1. Marital vs. Separate Property

The first step in determining what happens to your savings is to understand whether the assets in your husband's name are considered marital property or separate property. This distinction will guide how the assets are divided.

• Marital Property: In most states, anything acquired or earned during the marriage (except for gifts or inheritances) is considered marital property, regardless of whose name the asset is in. So, if you and your husband deposited money into an account in his name during the marriage, that savings is typically considered marital property and subject to division in the divorce.
• Separate Property: Separate property refers to assets acquired before the marriage, or assets that were explicitly gifted or inherited by one spouse. If the savings were deposited into your husband's account with the understanding that they were his personal funds (for example, if you gave him the money as a gift or inheritance), they may be treated as his separate property. However, if these assets have been commingled with marital funds, it can be difficult to separate them.

2. Property Division Laws in Your State

The way your savings are divided during a divorce will depend on whether you live in a community property state or an equitable distribution state.

• Community Property States: In community property states (such as California, Texas, or Arizona), most property acquired during the marriage is considered joint property, regardless of whose name is on the title. This means that your savings, even if they are in your husband’s name, would typically be considered part of the community property and divided equally (50/50) between you and your husband.
• Equitable Distribution States: In equitable distribution states (the majority of states in the U.S.), marital property is divided fairly but not necessarily equally. If your savings were deposited into an account in your husband’s name, the court will consider a variety of factors (such as the length of the marriage, each spouse’s financial contributions, and future needs) when determining how to divide the property. While you may not automatically receive a 50/50 share, you will still likely be entitled to a fair portion of the savings, especially if they were acquired during the marriage.

3. Commingling of Assets

If your savings were deposited into your husband’s account and the funds have been mixed with other marital assets, this can complicate matters. This is known as commingling. Commingling occurs when separate property is mixed with marital property, making it difficult to distinguish between the two.

• Example: If your savings (which are considered separate property) were placed in an account that also contains your husband’s earnings or other marital assets, it may be challenging to prove that the money is yours alone. In this case, the court may consider the funds as marital property because of the commingling, and they could be subject to division.
• Keeping Records: To avoid confusion or disputes, it’s important to keep detailed records of your separate property. If you can show that the funds you invested in your husband's name were intended as your separate property and were not mixed with marital funds, you may be able to argue that the savings should not be divided in the divorce.

4. Protecting Your Savings

If you are concerned about your savings being in your husband’s name and want to protect your share during the divorce, here are some steps you can take:

• Keep Documentation: Gather any evidence or documentation that proves the savings were yours. This could include bank statements, emails, or records showing the source of the funds, such as deposits made into the account with your husband’s name on it.
• Withdraw or Re-title Assets: If you are in the process of separating, it might be a good idea to move your funds into an account in your own name or at least request that your name be added to the account. This can help clarify ownership of the savings and may prevent issues of commingling later.
• Consult with an Attorney: To ensure that your interests are protected, it’s important to consult with an experienced divorce attorney who can help you understand how the savings in your husband’s name will be treated in your divorce. A lawyer can help you navigate the complexities of asset division and ensure that you are fairly compensated for your contributions.

5. Example Scenario

Let’s say that during your marriage, you deposited $50,000 into an account that is solely in your husband’s name. The money came from your earnings, and you did not consider it a gift to him, but rather a joint investment for the family. In this case:

• If you are in a community property state, the $50,000 will likely be considered joint property and subject to an equal division.
• If you are in an equitable distribution state, the court will examine the facts and determine what is fair. Since the money came from your earnings, you could argue that you are entitled to a larger share of the savings, depending on factors like your contributions to the marriage, the length of the marriage, and your financial needs post-divorce.
• If the money was originally yours but your husband has deposited it into an account in his name without your consent, you may be able to argue that it is separate property and should not be divided. However, this will depend on whether you can prove the funds were not commingled or used for joint purposes.

6. Legal Protections and Court Orders

If your savings or investments are in your husband’s name and you fear that he may attempt to hide or misappropriate those assets during the divorce, it’s important to take legal steps to protect your interests. Your attorney can help you:

• Request full financial disclosure: Both spouses are generally required to provide a complete disclosure of all assets and liabilities during a divorce. If your husband has investments or savings in his name that you were unaware of, your attorney can request a full financial disclosure or subpoena financial records to ensure all assets are accounted for.
• Freeze assets or request a temporary restraining order: In some cases, your attorney may seek a temporary restraining order to prevent your husband from moving or hiding assets during the divorce process.

Conclusion

If your savings are invested in your husband’s name, they may still be considered marital property and subject to division during a divorce, depending on the state’s property division laws and whether the savings were considered commingled or separate property. To protect your share of the assets, it’s important to document the source of the savings, consider re-titling the accounts, and seek legal advice to ensure you receive a fair portion of the marital estate. Your attorney can also assist in securing a fair financial settlement if there are concerns about asset concealment or mismanagement.