Dividing Pandemic-Era Savings: How Emergency Funds Are Treated In Divorce Today

The COVID-19 pandemic changed many aspects of daily life, including how families manage money. For many couples, emergency savings built during lockdowns, stimulus checks, and job disruptions have become a new point of focus in divorce cases. As we move further into 2025, courts are increasingly examining how pandemic-era savings are treated as marital property, and what that means for divorcing couples.

Below, our friends from Vayman & Teitelbaum, P.C. discuss dividing pandemic-era savings and how emergency funds are treated in divorce today.

The Things That Count As Pandemic-Era Savings

Emergency funds accumulated during the pandemic can take multiple forms:

• Cash savings: Money set aside from reduced spending or stimulus checks.
• Bank accounts and CDs: Accounts specifically funded as safety nets.
• Investments: Stocks, bonds, or retirement contributions made during the pandemic.
• Other liquid assets: Money in digital wallets, PayPal accounts, or other easily accessible funds.

Courts generally consider the source and timing of funds when deciding whether they are marital or separate property.

Marital VS. Separate Property

In most U.S. jurisdictions, marital property includes assets acquired during the marriage, while separate property generally includes assets brought into the marriage or received as gifts or inheritance. Pandemic-era savings usually fall into marital property, but there are important nuances:

• Savings from joint income: If both spouses contributed to the emergency fund, it’s almost certainly marital property.
• Savings from separate funds: If one spouse contributed pre-marriage money or received pandemic-related gifts or stimulus checks in their own name, courts may classify these as separate property.
• Documentation matters: Bank statements, investment records, and payroll deposits help establish the source of funds.

Even small contributions can affect classification, so keeping careful records during this period is critical.

Valuing Pandemic Savings

Unlike traditional assets like homes or cars, pandemic savings may include multiple accounts and forms of currency. Courts often focus on:

• Total balance at the time of separation: This provides a snapshot of what’s available for division.
• Growth or interest earned: If the savings accrued interest or investment gains, courts may include that in the marital estate.
• Access and liquidity: Easily accessible funds are generally easier to divide than tied-up investments.

Clear records ensure that all funds are properly accounted for and can help prevent disputes.

Division Strategies

Dividing emergency savings can be straightforward or complex, depending on the number of accounts and their uses. Common approaches include:

• Equal split: A 50/50 division of joint accounts or funds accumulated during the marriage.
• Offsetting other assets: One spouse may keep the savings in exchange for giving up a claim to other property, like a car or retirement account.
• Agreed-upon allocation: Couples may negotiate a division that accounts for individual contributions, current financial needs, or ongoing expenses.

Transparency and clear communication are key, especially when funds are still being used for day-to-day expenses or child support.

Planning Ahead

For couples approaching divorce, pandemic-era savings highlight the importance of proactive financial planning:

1. Track all contributions: Document income, deposits, and transfers to clarify the source of funds.
2. Use financial professionals if necessary: Accountants can provide evidence for court or negotiations.
3. Consider mediation: Negotiated settlements often preserve savings and avoid lengthy disputes.

Why It Matters

Pandemic savings aren’t just leftover money; they often represent months of careful planning, reduced spending, and financial resilience. As divorces continue in 2025, courts treat these funds like any other marital asset, weighing contributions, timing, and purpose. Understanding how emergency funds are classified, valued, and divided can help couples reach fair agreements while protecting their financial security. If you have questions about emergency funds and divorce or other family law matters, a divorce lawyer can answer them and provide legal advice.