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Our divorce decree states I will owe the federal up to 35,000, my ex husband owes the entire state taxes. When I sold my house, I was to get all the proceeds; instead I got a 14,000 state tax lien and a 19,500 federal lien that was paid out of the equity. My ex husband is filing bankruptcy and states that the rest of the federal will go in his bankruptcy. I am doing a refund for this year. I filed for an extension, was going to wait until after his bankruptcy. His bankruptcy attorney said that as long as I am filing single and doesn't have my ex's name on it, the IRS won't take my money, I will still get a refund. I don't want to make a mistake; I really need this money for my 2 small kids. Most the IRS debt is from 2007. Can someone please give me correct information?
5 ANSWERS
Family Law Attorney serving Bellevue, WA
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Dearbonn Law Offices PLLC
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First of all, you cannot discharge IRS debts. Secondly, you are now single and no longer married to him, so you will still get your refund.
Answered on May 10th, 2011 at 10:03 AM
Spencer Hale
Well, there are quite a few issues here. Most of the answer has to do with whether your ex is filing a chapter 7 or 13. Your best bet is to meet with an attorney to go over all of your options, but here are a few general principals: First, regardless of what the divorce decree says, the IRS and the State may collect from you or your husband because you are both liable on the debt.
The divorce decree just gives you the ability to sue your ex husband if he doesn't pay his share of the debts or if you end up having to pay his share of the debts. Your ex's obligation to you will survive a chapter 7 discharge, but can be extinguished in a chapter 13. Second, taxes typically are not discharged in bankruptcy, so your ex will still have to pay the state taxes even if they are not paid in the bankruptcy. If your ex files a chapter 13 then the state and federal taxes will probably be paid in full through the bankruptcy. I would disagree with your ex's attorney on the tax refund matter. Because you owe the taxes together with your ex, the IRS or the state may intercept your refund regardless of whether you file your taxes as a single individual or with him.
Answered on May 06th, 2011 at 10:24 AM
William C. Gosnell
You are not getting a refund.
Answered on May 06th, 2011 at 10:13 AM
Trusts & Estates Attorney serving Camarillo, CA
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Law Offices of Larry Webb
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Generally taxes are non-dischargeable and your husband's bankruptcy will have no consequence regarding the tax liability. Your divorce settlement is a state court document and the IRS will still look to you if you had joint liability for the taxes. Get your own attorney, you need to consult with a tax attorney, not your husband's bankruptcy attorney.
Answered on May 06th, 2011 at 10:13 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Your ex-husband's bankruptcy will not effect your rights under your divorce decree. Domestic support obligations in your divorce order are not dischargeable in his bankruptcy because of Section 523 (a) (5) of the bankruptcy code. Also, Section 507 (a) (1) (A)of the bankruptcy code makes domestic support obligations the first priority of claims if there are assets in his bankruptcy. However, if you owe either federal or state income taxes his bankruptcy will have no effect upon that even if some of the taxes are old enough that his obligation is discharged. In that event the divorce order still applies as to what he is obligated to pay for. If you owe income taxes you will not be entitled to a refund; the converse is also true.
Answered on May 06th, 2011 at 9:17 AM