Marrow v. Moskowitz, 255 N.Y. 219 (1931)

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When a joint bank account is created, each tenant has a present alienable interest in one-half of the deposit, and withdrawal of more than one’s moiety creates a liability to the other tenant for the excess withdrawn, absent proof of a contrary intent.

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Summary

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This case concerns the rights of parties in a joint bank account. A husband withdrew funds from a joint account he held with his wife. The court addressed whether this withdrawal extinguished the wife’s rights to the funds. The court held that creating a joint account establishes each party’s right to one-half of the funds. Withdrawal of more than one’s share does not terminate the joint tenancy but creates a debt to the other party. The intent to create a joint tenancy can only be rebutted by showing contrary intent when the account was created, not by later actions. The case clarifies the responsibilities and entitlements of individuals in joint bank accounts.

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Facts

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In a divorce action, the wife sought, among other things, a share of funds the husband had withdrawn from a joint bank account.r
The funds in the joint account originated from a workmen’s compensation award received by the husband. The initial deposit was approximately $42,000.r
Prior to the divorce action, the husband withdrew the balance of the joint account and placed it in an account solely in his name.r
The husband claimed he had spent the funds, stating