Are Cashier's Checks Safe from Judgments ?

[GoingDown]

I am asking this question for a relative. I told this person the answer is no, but I really am not sure, so I thought I would put this question out there.

Here's the situation...

"Jimmy" got kicked out of his house by his wife, and she is filing for divorce against him.

He had $45,000 in his checking account at a local bank, and he closed his account and had the money made payable to "Jimmy" in 4 different cashier's checks.

He figures this will be safer than having $45,000 in cash sitting around in his apartment.

I told him that if the judgment creditor, in this case his ex-wife, attempts to garnish his old checking account, the bank will simply seize any money that has not yet been cashed, and the cashier's checks will then become worthless. So, it would be best for him to simply cash the cashier's checks, and keep the money in cash.

Does anyone know about what happens to uncashed cashier's checks? Are they safe from judgments?

[psquared]

GD,

Not sure of the answer, but I do believe that cashier's checks have a use by date. I think they are valid for 90 days usually. Again not sure of this 100% but worth checking in case.

[jlmaca]

I am asking this question for a relative. I told this person the answer is no, but I really am not sure, so I thought I would put this question out there.

Here's the situation...

"Jimmy" got kicked out of his house by his wife, and she is filing for divorce against him.

He had $45,000 in his checking account at a local bank, and he closed his account and had the money made payable to "Jimmy" in 4 different cashier's checks.

He figures this will be safer than having $45,000 in cash sitting around in his apartment.

I told him that if the judgment creditor, in this case his ex-wife, attempts to garnish his old checking account, the bank will simply seize any money that has not yet been cashed, and the cashier's checks will then become worthless. So, it would be best for him to simply cash the cashier's checks, and keep the money in cash.

Does anyone know about what happens to uncashed cashier's checks? Are they safe from judgments?

It is my experience that "judgements" are awarded against an individual and not a specific asset. However, a lien can be placed on an asset but not a check. Maybe travelers checks would be more appropriate. I can't imagine the bank going after a "check" that has already been issued. Also if your friend's ex-wife attempts to garnish his old checking account he should know ahead of time that she is attempting to do this. She would need a court order to do so.

[wnguyen]

Has his wife already filed for divorce against him yet? In case she already has, that $45K has to be split up in half. If he tries to hide it, especially in cashier's checks (they can be traced), and the wife knows it, the judge is going to award her the entire $45K. That's what I've learned. So it's best for him to take cash out and spend or hide somewhere that only he will know

[GoingDown]

Thanks for the input, for those of you who took the time to respond to this question.

He read the info., and has decided to just keep the money as cash and use it for daily living expenses.

By the way, the money came from his inheritance from his mother dying, and yet his wife claimed that it should all go to her, which I know is wrong.

In theory, the money should be safe in a checking account since it was money he inherited, but we all know what happens when someone tries to garnish a checking account. It takes time, court costs, and legal fees to get the money back, even if he was successful in convincing the judge that he is entitled to that money.

[helpmeout]

He had $45,000 in his checking account at a local bank, and he closed his account and had the money made payable to "Jimmy" in 4 different cashier's checks.

He figures this will be safer than having $45,000 in cash sitting around in his apartment.

Had a different reply typed out, but then read a subsequent post about it being an inheritance. That is typically considered a separate asset and not subject to division in a family court. But he does need to list it in the discovery process and state where it came from as a reason for it not being part of the marital assets. His stbx can think it's subject to division all she wants, she's not going to win this one. Where this might get muddy is if he initially put it in a joint account. If he didn't, he really could have left it in the account it was in.

[helpmeout]

In theory, the money should be safe in a checking account since it was money he inherited, but we all know what happens when someone tries to garnish a checking account. It takes time, court costs, and legal fees to get the money back, even if he was successful in convincing the judge that he is entitled to that money.

The only way that a family court judge would seize it is if he is in arrears on any type of support obligation. And if it was seized for child support/alimony arrears, he wouldn't be able to get the money back.

[jwmc1]

I would get cash, anything else has tghe potential for being a problem...

[BigJohn]

A visit to Las Vegas would make it hard to track down the money.