Question of the Week

Question: We have a member that says his divorce decree stipulated that a check for their tax refund is supposed to belong entirely to him. He can only endorse for himself, but can we accept for deposit with his signature and the divorce decree?

Answer: No. Check law does not speak to situations such as this. That check needs to be endorsed by both parties for acceptance or deposited into an account bearing both names with a valid account agreement permitting the deposit. 

It is always a better policy to avoid getting between two individuals in a domestic situation, and to let them work it out privately than to permit an action that might involve the credit union or subject it to risk. 

In this case, a rejection of the deposit would be best, and the member can always work out any actions that they need under a divorce decree through his/her own counsel.