Divorcees face debt over joint bank accounts

It has been reported that many women fall into debt due to banks refusing to stop ex-husbands raiding joint accounts.

The Financial Ombudsman Service receives over 1,000 complaints a year from women who find themselves in this situation.  Although men are also at risk, the problem seems to be far worse for women because they tend to remain at the address of the joint bank account.

Banks are supposed to freeze joint accounts if they are told a relationship has broken down.  However in many cases, this isn’t happening since bank staff are poorly trained and not made aware of the rules. Instead women are being told that they must get their former partner’s written permission to close the account. This leaves them completely stuck if their ex-husband refuses.

A Financial Ombudsman Service spokesman said banks could be ordered to pay compensation if they refuse a request to freeze an account and money is then snatched by an angry ex-partner.

If you’d like information on divorce and finances please contact Alistair Dobson at Lawson-West on 01858 445 480.

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