If you’ve been married for a while, chances are there’s been a time when you needed to cash a check for your spouse. Maybe they were sick, out of the country or you just thought it wouldn’t be a big deal. Even if it’s not a big deal between the two of you, banks tend to see it differently.
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“It may sound old-fashioned, but your spouse can’t just roll into the bank and cash a paycheck in your name unless they’ve got the legal authority to do so,” says Christopher Naghibi, Esq., an attorney, executive vice president and chief operating officer at First Foundation Bank.
While you can’t just casually cash a check for your spouse, there are some ways in which it can be done legally. Let’s break down why it’s complicated — and when and how it can be done the right way.
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Why It’s Complicated
Love knows no bounds — unless, of course, you’re trying to cash a check for your spouse.
Why Banks Say No Without ID
If you are trying to cash a check that isn’t in your name, even if it’s for your spouse, it gets tricky fast. Here’s why.
“In most cases, banks require the payee’s signature and identification,” Naghibi said. “The person whose name is on the check must endorse it and prove who they are in front of the teller at the bank.”
Risk of Check Fraud
As much as you trust your spouse, the bank can’t operate on good intentions — it operates on risk assessment.
“Third-party checks or checks made out to one person but signed over to someone else are a huge potential fraud source for banks,” Naghibi said. “It’s not that they don’t trust your spouse, it’s that they don’t trust anyone without proper verification. That’s why most banks either flat-out refuse to cash third-party checks or require both parties to be present with IDs.”
Legal Ways Your Spouse Can Cash or Deposit Your Paycheck
Banks aren’t going to offer any shortcuts, but they do offer solutions. As long as you follow the rules, here are the legal ways for your spouse to handle your paycheck.
Use a Joint Account
Share a joint account? As long as your spouse is willing and able to endorse the check, it’s usually no problem.
“If you share a joint account or an account with both of your names on it, things get a little easier,” Naghibi said. “Once the check is properly endorsed by the payee — the person getting paid — your spouse can usually deposit it into that joint account with no challenges.”
Because you both already have legal access to the funds in the joint account, you’ll both have full access to the check as soon as it clears.
Give Your Spouse a Financial Power of Attorney
If your spouse needs to cash or deposit a check without your ID and signature or into a separate account, they’ll need legal permission to do so on your behalf. One way to make that happen is through a financial power of attorney.
“If your spouse is named as a ‘financial power of attorney,’ they may be able to sign and deposit checks on your behalf,” said Jay Zigmont, PhD, CFP®, Founder and CEO of Childfree Wealth.
Remember, a financial POA isn’t necessary if the check is properly endorsed and going into a joint account. But if you’re in the hospital, traveling overseas or using a separate account, it can be the safest and most reliable option.
“You can’t just draft one, though. The person whose behalf you’re acting on has to sign the document in front of a notary public who is going to get their ID and fingerprint,” Naghibi said. “If your spouse has one, your spouse can step in legally.
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Sources:
Christopher Naghibi, Esq., attorney, executive vice president and chief operating officer at First Foundation Bank
Jay Zigmont, PhD, CFP®, Founder and CEO of Childfree Wealth
This article originally appeared on GOBankingRates.com: Can Your Spouse Cash Your Paycheck?
