Can One Parent Open A Bank Account Or Credit Card In A Child’s Name After Divorce?
A lot happens financially during the process of divorce, but none of it excuses one parent from being responsible for acting in the best interests of their child. One issue that may crop up during a divorce is whether one parent is allowed to set up an account, or even a credit card, in the name of the child without letting the other parent know about it.
Knowing how all this works will enable you to save yourself and your child a lot of trouble in the future.
Opening a bank account for a child
In most cases, one parent may be allowed to open a custodial or joint bank account for their minor child without the other parent’s permission. Many banks allow one of the parents or even a legal guardian to open a bank account for the minor, especially if they are the custodian of that account.
The presence of a divorce or custody order can create a problem, however. Many parenting agreements require parents to make decisions on certain financial matters jointly. Opening a bank account without the other parent’s consent could violate such an order.
In cases where there is no court order on the matter, the parents need to discuss the accounts opened for the benefit of their children.
Credit cards present different concerns
There is an entirely different way of approaching the issue of credit cards. Minors usually cannot enter into legal contracts to get credit. A parent can, however, include their minor child as an authorized user on the account.
Although this might help the child start building a good credit record in certain places, it must be approached wisely. For example, poor money-management skills of the primary cardholder can have a negative effect on the child’s credit scores in some cases. Misusing the child’s identity to access credit is also a bad idea.
The parent must never take out a credit card in the name of the child by using his or her Social Security number.
When disagreements lead to court
The matter could lead to litigation after divorce if one parent feels that the other has made some financial decisions on behalf of the child without adequate authorization. The Florida courts usually base their decisions on whether the actions of the parents are in the best interests of the child and if they’ve followed the parenting plan or the final divorce decree.
This is because one parent may open new accounts without telling the other, hide money meant for the child, or use the child’s information inappropriately.
Talk to a Tampa, FL, Child Custody Lawyer Today
Faulkner Law Group, PLLC, represents the interests of parents in custody disputes over their minor children. Call our Tampa family lawyers today to schedule an appointment, and we can begin discussing your next steps right away.
