Can One Spouse Remove the Other From a Joint Bank Account Without Consent?
Full Question:
Answer:
In the case of spouses owning a joint bank account, without consent, one spouse cannot remove the other's name from the account. However one spouse can close the account and then open a new account with the money. This can work both ways, so so the other spouse has equal opportunity to close the account and get the money. Then open yourself a new account with just your name on it. On a joint account either person can go in and close the account out. Then take the money and open themselves a new account. Most of the time it depends on who makes it to the bank first to close out the account.
According to NM statutes, "Certificate of deposit" means an instrument containing an acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money. A certificate of deposit is a note of the bank.
"Account" is also defined under NM statutes as "a contract of deposit of funds between a depositor and a financial institution, and includes a checking account, savings account, certificate of deposit, share account and other like arrangement.
While NM statutes apply to joint accounts, the answer will also be governed by contract law principles according to the terms of the deposit agreement with the bank, as stated in the previous answer.
NM statutes state that “If an instrument is payable to two or more persons alternatively,
it is payable to any of them and may be negotiated, discharged, or
enforced by any or all of them in possession of the instrument. If an
instrument is payable to two or more persons not alternatively, it is
payable to all of them and may be negotiated, discharged, or enforced only
by all of them. If an instrument payable to two or more persons is
ambiguous as to whether it is payable to the persons alternatively, the
instrument is payable to the persons alternatively.”
Please see the following NM statutes:
55-3-116. Joint and several liability; contribution.
(a) Except as otherwise provided in the instrument, two or
more persons who have the same liability on an instrument as
makers, drawers, acceptors, indorsers who indorse as joint
payees or anomalous indorsers are jointly and severally
liable in the capacity in which they sign.
(b) Except as provided in Section 55-3-419(e) NMSA 1978 or
by agreement of the affected parties, a party having joint
and several liability who pays the instrument is entitled to
receive from any party having the same joint and several
liability contribution in accordance with applicable law.
55-3-110. Identification of person to whom instrument is payable.
(a) The person to whom an instrument is initially payable is determined
by the intent of the person, whether or not authorized, signing as, or in
the name or behalf of, the issuer of the instrument. The instrument is
payable to the person intended by the signer even if that person is
identified in the instrument by a name or other identification that is
not that of the intended person. If more than one person signs in the
name or behalf of the issuer of an instrument and all the signers do not
intend the same person as payee, the instrument is payable to any person
intended by one or more of the signers.
(b) If the signature of the issuer of an instrument is made by
automated means, such as a check-writing machine, the payee of the
instrument is determined by the intent of the person who supplied the
name or identification of the payee, whether or not authorized to do so.
(c) A person to whom an instrument is payable may be identified in any
way, including by name, identifying number, office, or account number.
For the purpose of determining the holder of an instrument, the following
rules apply:
(1) If an instrument is payable to an account and the account is
identified only by number, the instrument is payable to the person to
whom the account is payable. If an instrument is payable to an account
identified by number and by the name of a person, the instrument is
payable to the named person, whether or not that person is the owner of
the account identified by number;
(2) If an instrument is payable to:
(i) a trust, an estate, or a person described as trustee or
representative of a trust or estate, the instrument is payable to the
trustee, the representative, or a successor of either, whether or not the
beneficiary or estate is also named;
(ii) a person described as agent or similar representative of a
named or identified person, the instrument is payable to the represented
person, the representative, or a successor of the representative;
(iii) a fund or organization that is not a legal entity, the
instrument is payable to a representative of the members of the fund or
organization; or
(iv) an office or to a person described as holding an office, the
instrument is payable to the named person, the incumbent of the office,
or a successor to the incumbent.
(d) If an instrument is payable to two or more persons alternatively,
it is payable to any of them and may be negotiated, discharged, or
enforced by any or all of them in possession of the instrument. If an
instrument is payable to two or more persons not alternatively, it is
payable to all of them and may be negotiated, discharged, or enforced only
by all of them. If an instrument payable to two or more persons is
ambiguous as to whether it is payable to the persons alternatively, the
instrument is payable to the persons alternatively.
55-3-104. Negotiable instrument.
(a) Except as provided in Subsections (c) and (d), "negotiable
instrument" means an unconditional promise or order to pay a fixed amount
of money, with or without interest or other charges described in the
promise or order, if it:
(1) is payable to bearer or to order at the time it is issued
or first comes into possession of a holder;
(2) is payable on demand or at a definite time; and
(3) does not state any other undertaking or instruction by the person
promising or ordering payment to do any act in addition to the payment of
money, but the promise or order may contain (i) an undertaking or power
to give, maintain, or protect collateral to secure payment, (ii) an
authorization or power to the holder to confess judgment or realize on or
dispose of collateral, or (iii) a waiver of the benefit of any law
intended for the advantage or protection of an obligor.
(b) "Instrument" means a negotiable instrument.
(c) An order that meets all of the requirements of Subsection (a),
except Paragraph (1), and otherwise falls within the definition of
"check" in Subsection (f) is a negotiable instrument and a check.
(d) A promise or order other than a check is not an instrument if, at
the time it is issued or first comes into possession of a holder, it
contains a conspicuous statement, however expressed, to the effect that
the promise or order is not negotiable or is not an instrument governed
by this article.
(e) An instrument is a "note" if it is a promise and is a "draft" if it
is an order. If an instrument falls within the definition of both "note"
and "draft", a person entitled to enforce the instrument may treat it as
either.
(f) "Check" means (i) a draft, other than a documentary draft, payable
on demand and drawn on a bank or (ii) a cashier's check or teller's
check. An instrument may be a check even though it is described on its
face by another term, such as "money order".
(g) "Cashier's check" means a draft with respect to which the drawer
and drawee are the same bank or branches of the same bank.
(h) "Teller's check" means a draft drawn by a bank (i) on another
bank, or (ii) payable at or through a bank.
(i) "Traveler's check" means an instrument that (i) is payable on
demand, (ii) is drawn on or payable at or through a bank, (iii) is
designated by the term "traveler's check" or by a substantially similar
term, and (iv) requires, as a condition to payment, a countersignature by
a person whose specimen signature appears on the instrument.
(j) "Certificate of deposit" means an instrument containing an
acknowledgment by a bank that a sum of money has been received by the
bank and a promise by the bank to repay the sum of money. A certificate
of deposit is a note of the bank.