Joint account/bank levy

[Happybluesky]

Is a joint bank account requiring both signatures for withdrawal, say John AND Sally, safe from levy where only one party is vulnerable in a lawsuit? Or, would this put both parties in harm's way.

[Guest usctrojanalum]

this varies by state. in NY both parties are vulnerable and i'm sure in every state a creditor can bring a motion/petition or some other action in a court to seize funds from a joint account.

[jq26]

Varies by state law. The general rule is that a creditor of either can levy on all funds in the account. However, in some states, typically in the northeast US, tenancy-by-the-entirety presumptions kick in and protect TBE property from a creditor of either but not a credit of both. To be considered tenancy-by-the-entirety property, the titled property must be joint marital property.

In some states, TBE presumptions are stronger than others. So if a checking/savings account is titled as joint, in some states the presumption is TBE, and other states the presumption is that it isn't TBE (since technically it isn't titled that way). The same presumptions apply on cars, homes, whatever.

[chuckygee]

In Ohio, there is some protection, but the funds will be seized first, and then you have to go to the court garnishment hearing and argue why some of the money should be given back. You then have to prove by evidence what funds are exempt and for what reason.

[OhioResident]

In my case they they went to garnishment first.