Going through a divorce is never easy, and agreeing on dividing assets can be a challenge. If you're in the process of divorce and have money market accounts, what should you do? The answer can depend on how or if you and your spouse are getting along, and the laws governing divorce in your state. If you have significant assets, it's best to consult an attorney specializing in divorce as wells as a financial advisor. Here are some general methods of dividing jointly held money market accounts:

• Divide your money market account through informal agreement: (This is not usually recommended due to changes of sentiment that can occur during divorce.) If you and your spouse have few assets and can amicably agree on dividing your money market account, you can decide to provide one partner with one half of the value of the existing money market account. The spouse receiving funds disbursed from the existing account can then establish a new individual money market account. Contact the institution holding your money market account for specific details on how it can be divided and/or converted to an individual account.

• Incorporate money market accounts into an escrow or trust account: An escrow or trust account can be set up with an objective third party, usually an attorney or financial officer. The administration of escrow and trust accounts may be governed by state law. The designated escrow or trust officer must approve all activity within the escrow or trust account until your divorce and property settlement are final.

• Freezing money market accounts: If your divorce is contentious, your attorneys may ask banks and financial institutions to freeze joint accounts. This means that neither you nor your spouse can withdraw any funds from these accounts without consent of the other party.

Opening a New Money Market Account before Your Divorce Is Final

Your ability to open an individual money market account while still legally married can be affected by laws in your state. If you live in a community property state, there may be complications if all assets jointly and individually held during the marriage must be equally divided. Your spouse may also be required to sign a document releasing his/her interest in your individual money market account.

Money market accounts may be subject to withdrawal restrictions; consult your financial institution for details. Getting professional legal and financial advice during your divorce can help you protect your interests and avoid unnecessary delays in setting up your new money market account.