Use of old bank checks and liability

[masimo125]

What is the name of your state (only U.S. law)? Arizona

This is my 3rd question. My wife and I still live together but I'm going to divorce her. Today I noticed that she a ton of old checks with both of our names on it (we used to have a joint account that I recently closed down).

I'm liable for anything if she decided to use these checks just because my name is still on?

 

[mistoffolees]

What is the name of your state (only U.S. law)? Arizona

This is my 3rd question. My wife and I still live together but I'm going to divorce her. Today I noticed that she a ton of old checks with both of our names on it (we used to have a joint account that I recently closed down).

I'm liable for anything if she decided to use these checks just because my name is still on?

Until you file for divorce, any debts incurred are marital debts - so you're responsible for half - regardless of whose name is on the checks.

If she knowingly passes bad checks, though, that is criminal activity which she can be punished for. You might want to make it clear to her (preferably in writing) that the account was closed and not to write any checks from it.

If she knowingly passes bad checks, you could ask the court to exempt them from the 50:50 split of debt, but I wouldn't want to venture on the odds of winning that argument (as an analogy, lots of people run up their credit cards beyond their ability to pay and divorce judges still split the debt).

 

[masimo125]

Until you file for divorce, any debts incurred are marital debts - so you're responsible for half - regardless of whose name is on the checks.

If she knowingly passes bad checks, though, that is criminal activity which she can be punished for. You might want to make it clear to her (preferably in writing) that the account was closed and not to write any checks from it.

Wow! That is great actionable item for me. I'll definitely do that!

If she knowingly passes bad checks, you could ask the court to exempt them from the 50:50 split of debt, but I wouldn't want to venture on the odds of winning that argument (as an analogy, lots of people run up their credit cards beyond their ability to pay and divorce judges still split the debt).

I'm not sure how can one rack up debt using checks that don't have any bank account behind anymore? I don't understand.

 

[mistoffolees]

I'm not sure how can one rack up debt using checks that don't have any bank account behind anymore? I don't understand.

Technically, she can't. So there's really little to worry about.

HOWEVER, I can picture a situation where she buys something and writes a bad check. The merchant will then try to collect the amount of the check. If she does it before you've filed for divorce, you're going to be paying half. If she writes a bad check AFTER you file for divorce, it's her problem.

Picture her walking into a Ferrari dealer and writing a check for $100 K and driving off with the car and wrecking it. If you haven't filed for divorce, you're going to owe half.

Granted, anyone accepting a $100 K check is likely to verify that the account is still open and has sufficient funds, but for smaller amounts, they may not bother.

 

[penelope10]

Just a silly suggestion, but since the account is closed, why don't you suggest that the two of you shred the checks together. She should be agreeable to this unless she plans on using the checks in a fraudulent way....

 

[mistoffolees]

Just a silly suggestion, but since the account is closed, why don't you suggest that the two of you shred the checks together. She should be agreeable to this unless she plans on using the checks in a fraudulent way....

Good idea, but I'd suggest making the suggestion in writing (even email) or, if it's legal in his state (I didn't look it up), recording a phone conversation where he suggests the same thing.

The more evidence he can provide that he was not part of the check fraud, the more likely it is that the judge will not hold him responsible.

 

[penelope10]

Good idea, but I'd suggest making the suggestion in writing (even email) or, if it's legal in his state (I didn't look it up), recording a phone conversation where he suggests the same thing.

The more evidence he can provide that he was not part of the check fraud, the more likely it is that the judge will not hold him responsible.

I agree with not only making the suggestion verbally, but also in writing if she is not willing to do it at the time he makes the suggestion. (It really only takes a manner of minutes to shred a book or books of checks.) If she is unwilling to shred the checks with him at that moment, then I would put something in writing to her in regards to this. I would most certainly make sure the checks were shredded before I moved from the apartment. He should also call the bank or check old bank statements to get the last check number used on the account. He should also contact the bank to get the check sequences on the last check order from the bank. (That way he knows all the checks have been shredded). He might also want to send her a letter after the checks are shredded if he did not send her a letter before. (Just in case she has socked away a couple of checks for future use without his knowledge).

 

[masimo125]

Thank you! You cleared all my fears in this department.

 

[LdiJ]

I would like to suggest that instead of starting a new thread every time you have a question, you really just need to ask your new question, in your original thread. Its against forum ettiquette to start a new thread every time you have a question.