If the divorced parties agree it is mutually beneficial to allow a jointly held CD to mature before cashing (about 2 years after the divorce is final); is it possible for the bank to issue separate checks to them individually as long as both parties are present and agreeable? The penalty would be a tremendous hit for them both and taxes on the interest would be split equitably. The amount is greater than either can afford to 'buy out' the other. Thanks in Advance!

I don't see why this would be a problem. Double-check with your personal banker regarding your bank's policies!

As a banker, I would issue one joint check and allow them to cash it. Taxes and penalties can be split however the owners want. But there is no incentive on the bank to go out of its way to document and issue individual checks. If the relationship with the bank is such that they'll do this, great. But the bank can't have one owner coming back and saying they didn't receive full benefit of the funds.

Need detailed information about the law and ethics of the certificates of Deposit.

You need to go to your state of interest for the specific laws, especially as they may involve divorce and ownership. The information you're looking for isn't available on this site.