What happens to our joint bank accounts when we separate in Ontario?

When married spouses in Ontario separate, joint bank accounts are part of the net family property calculation. The balance in a joint account as of the separation date counts as an asset of each spouse equally (or in proportion to their interest, depending on the account terms). However, "equal" in a joint account does not automatically mean each spouse takes half and walks away — the account's value is factored into the broader equalization calculation.

Practically, either account holder can withdraw funds from a joint account at any time. Spouses sometimes drain joint accounts after separation, which can be a serious problem. Courts can order that money be repaid if one spouse dissipated joint assets after separation in bad faith. To protect yourself, you may want to document the balance of all joint accounts on the separation date and, if appropriate, freeze or split the account to prevent one-sided withdrawals.

Moving forward, separating spouses typically transition to fully separate banking, and the final resolution of joint accounts is addressed in the separation agreement. If one spouse has been making unilateral withdrawals, raise this with a lawyer promptly.