How to Close Joint Bank Accounts After Divorce in New Brunswick

A court order or separation agreement that says your ex is responsible for a joint debt doesn't protect you from the creditor. Under contract law, both account holders remain jointly and severally liable until the account is formally closed. If your ex defaults on a joint credit card, the bank can — and will — come after you for the full balance.

This is one of the most common post-divorce financial traps in New Brunswick, and it's entirely preventable.

The Joint Account Problem

Standard retail bank account agreements in Canada grant both joint holders full authority to withdraw up to 100% of the funds at any time, without the other person's consent. The moment you decide to separate, this becomes a financial risk.

Under the Marital Property Act, joint bank accounts are classified as "family assets" subject to the presumptive 50/50 equal division. But the law and the bank operate on different timelines — the bank doesn't care about your separation agreement until you actually change the account terms.

Step 1: Document Everything First

Before closing anything, create a complete financial snapshot:

• Print or download 12 months of statements for every joint account (chequing, savings, credit cards, lines of credit)
• Screenshot current balances with timestamps
• List every pre-authorized payment or direct deposit linked to each account

This documentation is essential. If there's ever a dispute about account balances at the date of separation, these records become evidence.

Step 2: Freeze Joint Accounts

Contact your financial institution in writing — not just by phone — and request one of two actions:

Option A: Convert to dual-signature. Both parties must approve any withdrawal or transaction. This prevents unilateral access while keeping the account open for incoming payments or transfers that are still in process.

Option B: Full freeze. No transactions in or out. This is the nuclear option, but it's appropriate when you have reason to believe your ex might drain the account.

If the bank refuses to freeze the account without both parties' consent, you may need an interim order from the Court of King's Bench under the Family Law Act. In cases where one party has already drained a joint account, the court can apply an "add-back" remedy — counting the withdrawn funds as part of the taking spouse's final share of the marital estate.

Step 3: Redirect Income and Pre-Authorized Payments

Before you can close a joint account, you need to redirect everything connected to it:

• Payroll direct deposit — set up a new individual account and notify your employer
• Pre-authorized debits — utilities, insurance, subscriptions, loan payments
• Government benefits — update CRA direct deposit for CCB, GST credits
• Child support or spousal support — redirect to individual accounts

Allow at least one full billing cycle for all redirections to take effect before closing the joint account.

Step 4: Close Joint Credit Products

Joint credit cards, lines of credit, and HELOCs require special handling:

1. Pay the balance to zero or transfer remaining balances to individually held credit products
2. Submit a joint written request to close the account — most institutions require both cardholders to authorize closure
3. Get written confirmation that the account is closed and both parties are released from liability

A separation agreement clause saying "spouse A is responsible for the Visa balance" is binding between you and your ex, but the credit card company isn't a party to that agreement. Until the account is formally closed, both names stay on the hook.

Step 5: Open Individual Accounts

Set up new individual accounts at your own institution. Consider:

• A chequing account for daily expenses and income
• A savings account to replace your share of joint savings
• An individual credit card to rebuild your solo credit history

If you've been primarily using joint credit products, your individual credit history may be thin. Building it back up takes time, and starting immediately after separation gives you a head start.

The Auto Loan Trap

Vehicle loans require the same treatment as other joint debts. If both spouses are on an auto loan, the person keeping the vehicle should refinance it into their name alone. The departing spouse should get written confirmation from the lender that they've been released from liability.

The New Brunswick After-Divorce Checklist includes a complete account-by-account tracker and template letters for freezing and closing joint accounts — organized in the exact order you need to tackle them.

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