How to Split Bank Accounts After Divorce in South Carolina

Your divorce decree tells you who gets what from your joint accounts, but the bank does not read divorce decrees. Until you physically walk in with a certified copy and instruct them to close or re-title the account, both names stay on it and both parties retain full access to withdraw every dollar.

What the Law Does (and Does Not Do)

South Carolina Probate Code Section 62-2-507(c)(2) automatically severs the survivorship rights on joint bank accounts upon divorce. This means if one ex-spouse dies, the survivor no longer automatically inherits the other's share — the account converts from joint tenancy with right of survivorship to tenancy in common.

But this statute only affects what happens at death. For day-to-day purposes, the bank will continue honoring withdrawals from either account holder until it receives formal written notice of the divorce. Your ex can legally drain the account the day after the decree is signed, and the bank has no liability.

The Safe Separation Sequence

Step 1 — Open individual accounts first. Before touching any joint account, each party should open a new checking and savings account at a separate financial institution. This prevents any gap in access to funds.

Step 2 — Redirect income. Update your employer's direct deposit to your new individual account. Contact every company or service that sends recurring payments to the joint account (utilities, subscriptions, loan payments) and redirect them.

Step 3 — Audit automatic payments. Check the last three months of joint account statements for every recurring ACH debit, auto-pay, and scheduled transfer. Redirect each one to the appropriate individual account. Missing one means a failed payment, a late fee, or an overdraft.

Step 4 — Close or re-title. Take a certified copy of the divorce decree to the bank and either close the joint account (dividing the remaining balance per the court order) or remove one party's name. Some banks require both parties to be present for closure, while others accept the decree plus a signed authorization from the account holder being removed.

Credit Cards Are Different

Joint credit card accounts must be closed entirely, not just updated. Credit card issuers rarely release a joint debtor from liability while the account remains active. Even if the decree assigns the balance to your ex, the card company can still pursue you for payment because the creditor was not a party to your divorce.

Pay off the balance according to the court order, close the account, and open individual credit cards. If you cannot pay the balance immediately, transferring it to an individual card in the responsible party's name is the next best option.

Protect Your Credit Score

After closing joint accounts, place a fraud alert or credit freeze with all three bureaus (Equifax, Experian, TransUnion) if you suspect your ex may open accounts using shared information. Run a full credit report 60-90 days after the divorce to verify no joint accounts remain active.

The South Carolina After-Divorce Checklist includes a complete accounts worksheet that walks you through auditing, redirecting, and closing every joint financial account.

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