My husband had a joint savings account with his step-son. My husband started this account more than 10 years ago and has money directly deposited into this account. My step-son has put no money into this account. My step-son has always been told this money was to be used for schooling, or if he got out in the real world, it could help him be a down payment on a house. My step-son has now requested all the money ($1500) because it is "his" according to him and his mother, but he is not using it for college or a home. He wants it to help him pay his car payment, cell phone bill, credit card bills, cigarettes, etc. My step-son has threatened to take us to small claims stating that the money is his, but it is in both his name and his dad's name, and his dad is primary. Can he do this?

If the account is held as joint tenants then he might make a case that the money is his. But I doubt if a court will look at it that way.

Is there any way of your husband proving that it was him alone that put the money in the account? I.e. paying in slips?

That could put him in good stead, but other than that, I can't really see a happy resolution to this!

If it's a joint account (joint tenants with rights of survivorship is a commonly-used arrangement), then both owners have equal rights to the money. It seems to me that your husband could simply withdraw all the money and then there's nothing left to share.

However, are you absolutely sure this wasn't a custodial account that your husband set up for his step-son? Because if it is, then the account belongs to the step-son, and your husband has no recourse to keep it once the kid reaches age 21 (actual age may vary by state).

One final thought - whose social security number is listed on the account? Seems to me that whoever has been paying taxes on the interest earned has a strong case for true ownership. If it's a custodial account, it would be the kid's SS number on the account.