How long can my ex keep a check before it becomes void?

Full question:

In a divorce 3 years ago I wrote my ex a check for pay-off of equity on our house that I kept. She never cashed the check. Since then I have closed that account . I received a letter from her this week saying she wanted her money. Is there a staute on how long she can keep a check and never cash it. Doesn't it become void after a certain period of time?

Answer:

A bank is not obligated to pay a check that is more than six months old. According to Section 4-404 of the UCC, while a bank may choose to cash a stale check, it is not required to do so. If the bank processes a check after six months, it can do so in good faith, meaning it has no reason to believe the account holder does not want the check paid. Therefore, your ex may have a claim for the money, but the check itself is considered stale.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

An equity buyout in a divorce occurs when one spouse buys out the other’s share of the marital home’s equity. This typically involves determining the home's current market value, calculating the equity, and agreeing on a buyout amount. The spouse retaining the home will pay the other spouse their share, often using cash or refinancing the mortgage. It’s important to have a clear agreement documented to avoid future disputes. Consulting a legal professional can help ensure the process is fair and legally binding. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*