A joint bank account comes with many benefits. You can pool funds and manage your financial goals together. You can also save the cost of having two or more accounts.
However, a joint account can be problematic if a dispute arises between the parties. It could be due to relationship issues, money, or some other reasons. A dispute can make managing funds in a joint account difficult. In case of a dispute over joint account funds in India, the following steps can be taken to manage the situation:
Resolve the dispute amicably
The first step should be to try and resolve the dispute amicably between the account holders. Communication is key in this situation, and both parties should attempt to come to a mutually-agreeable solution.
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Take the help of a mediator
If the dispute cannot be resolved amicably, involve a mediator. This could be a trusted friend or family member who can act as an impartial third party and help to find a solution.
Seek legal advice
If mediation fails, seeking legal advice may be necessary. Consult a lawyer who specialises in banking and finance laws to understand the legal implications of the dispute and explore options for resolving it.
Approach the bank
Approaching the bank may be the last option. The bank can freeze the account or divide the funds based on the terms and conditions of the joint account agreement. However, this should be a last resort as it can involve legal proceedings and can be a lengthy process.
Check your bank statement regularly
Check your bank statement as and when you get it from your bank. This way you will know about any transactions. You can also use the same as a proof in case of any dispute or diversion of funds.
Keep track of transactions
Every time funds are withdrawn, you get a message on your phone and email notifying the same. It is important to immediately inform the bank about transactions done without your knowledge. Your funds are jointly held and in case of a dispute, it has to be handled with the consent of both the parties and terms and conditions of the account.
Adhil Shetty, CEO, Bankbazaar. com, says, “Managing funds in a joint bank account requires clear communication, transparency, and mutual trust between parties. Agree on how much each person will contribute to the account and what expenses will be paid from the joint account. You should also agree on how often you will review the account and how you will communicate about any changes. Make sure all transactions are recorded and documented. It will help you track any transaction done without your consent.”
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In case withdrawals continue without your consent or you believe that funds will not be safe, you can immediately raise a request to freeze the account. However, the bank may take the permission of both parties. In certain cases, only one party can get the account blocked, but this is dependent on the terms and conditions of the bank with regard to joint accounts.
It is advisable, therefore, to carefully read and understand these terms before opening a joint account.
YOURS OR MINE?
- Managing funds in a joint account requires clear communication, transparency, and mutual trust between parties
- The bank can freeze the account or divide the funds based on the terms and conditions of the joint account agreement
- Inform the bank about transactions done without your knowledge