You've dodged the bullet; paying the funds into court and seeking a declaratory judgment was a wise move.
Had the wife moved a bit more slowly and taken the "correct" route, filing a formal claim, your bank would not have had a defense to the reclamation notice. Your bank needs to dramatically revise its proceedures for accepting government checks for deposit...
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.