- Date : 23/04/2023
- Read: 5 mins
A joint banking account helps pool funds and manage finances jointly. What will happen if there is a dispute and no amicable solution is there? Let's find out.
Are you facing problems managing your joint banking account with your spouse, partner, or other parties? Is your breakup, separation, or divorce bringing up trust issues regarding your joint bank account? Are you worried about your joint account due to your partner's debt? If you are facing any or all of these issues, you should learn how to resolve your joint bank account dispute.
Before learning about the way outs of the issues with your joint bank account, it is important to acknowledge the benefits of joint banking accounts. Let's explore.
Top 6 Benefits of Joint Account in Bank
Your joint banking account can help you:
- Pool funds together
- Manage financial goals together
- Handle “financial shocks” jointly in a better manner
- Keep track of your family’s finances effectively
- Budget easily and effectively with spouse/partner
- Create mutual trust, transparency, and clear communication between the joint account holders
The relationship between the joint account holders may go south, giving rise to potential disputes among the joint account holders. A dispute among parties of a joint banking account may arise from:
- Relationship issues
- Money issues
- Other reasons
In a joint account, anyone can withdraw money. If your relationship with the other joint account holder is deteriorating, he/she may carry out bank transactions even if you don't want to. Beware if you suspect your relationship with the other joint account holder is deteriorating. Take necessary precautions to avoid disputes. You may take the necessary steps to resolve the disputes related to your joint banking account.
Also Read: Different Types of Bank Accounts in India
Joint Bank Account Disputes: How to Resolve?
There are six essential steps that you may follow to resolve joint banking account disputes:
1. Try to Resolve The Dispute with The Other Joint Account Holder Amicably
The best way to resolve a dispute between two parties is to solve it amicably. Both the joint account holders should communicate the pain points to resolve the matter between themselves. This communication channel may help them reach a solution agreed upon by both.
2. A Mediator May Help
If you and your partner can't resolve the dispute in an amicable manner, your next step is to take the help of a mediator. A mediator can be anyone from your family or a friend whom both of you can trust. Always try to choose a mediator who can help both of you find a solution impartially.
3. Consult a Lawyer
You can always seek legal advice if both amicable dispute resolution and mediator help fails. Try to consult a lawyer who specialises in financial and banking laws. The concerned lawyer must have an adequate understanding of the dispute's legal implications so that he/she can provide you with multiple solutions to resolve the dispute.
4. Contact Your Bank
If none of the above-mentioned ways works to solve the dispute between the holders of the joint banking account, your last resort is to approach your bank. You can report the dispute to the bank manager. He/she can, in turn, resolve the dispute between you and the other joint account holder of the bank.
Your bank can provide you and your joint account holder with two options:
- Option #1: Freeze the joint banking account
- Option #2: Divide the available funds in the joint account to the account holders per the agreed-upon terms and conditions.
Always remember that legal proceedings may be involved in any dispute between the joint holders of a bank account. So, always keep the option of contacting your bank as your last resort.
5. You Should Check Your Bank Statement Regularly
As a precaution, you should always check your joint bank account statement regularly. This will help you track bank transactions of your joint account. If you find evidence of fund diversion or any other disputed transaction, you can use it as proof.
When anyone withdraws funds from your joint account, you get a notification message to your email and mobile number. If you find any transaction you disagree with, you can raise a flag with your partner or bank.
Also Read: Bank Account Statement
6. Freeze Account
If the other holder of your joint account continues withdrawing funds from the account, you can always ask your bank to freeze the account. When you make such a request to the bank, it usually takes permission from both account holders. In certain circumstances, the bank may block the account with the consent of one account holder.
However, that depends upon the terms and conditions you and your partner agreed to at the time of account opening. That's why you should always read and understand the terms and conditions carefully and thoroughly before you open a joint banking account.
