I received a reclamation request from a bank regarding a WI income tax refund check. The check was made payable to Jane Doe & John Doe (married). Jane Doe claims that she did not sign John's signature and that he's only making this claim to make their divorce stickier. However, we do have a signed affidavit from him affirming his claim. That aside, when she negotiated the check the proceeds from the check were immediately used to make a cashier's check payable to the couples landlord. My question has two parts. Does the fact that they were married when this check was negotiated and that the proceeds went to pay a common obligation (rent) matter? AND If my customer does have to repay this check shouldn't she only be obligated to repay 1/2 of the check because of the marital property laws here in WI?

I have a call into the WI dept of treasury but I wanted to get some background info before I had that conversation.

PBM,

I have to admit I have more questions than answers. They both had to endorse the check, no doubt about it. You ask if it matters that it went to pay a marital obligation, my question is how do you know it was a marital obligation? You say a cashier's check was made payable for rent, do you know for a fact they lived together at that time, that the individual was the landlord?

You want to know if she only owes half the amount of the check. Yes, provided the check really did go to pay for a debt incurred in the interest of the marriage or the family, but how do you know that?

Since you have a signed affidavit, I believe you need to collect the full amount of the check, then get the funds split properly between the two of them.

If you haven't reviewed it already, state statute 766 covers marital propery.

Good luck on this one, let me know how it goes.

By the way, PBM, we have a common friend - Face.

Opinions are my own and not those of my employer.