February 13, 2010
Marrying into Tax Problems
If you know there are IRS issues in your future spouse's history, then they could become yours too. Minimize your liability to the IRS. You should not have to pay tax debt that is not yours.
Joint accounts are not encouraged.
If you have a joint bank account, the IRS can seize it as payment for your spouse's tax debt, so it is best to keep separate accounts. Recovering your money will be a long process and having separate bank accounts is a good way to avoid this situation.
Assets should be kept under your name.
Assets that you purchase after you're married must be titled only to you. This shows that you are the sole owner. The IRS can't seize this property for payment of the tax debt of your spouse. Also, don't add your spouse's name to property you bought prior to the marriage. The presence of your spouse's name on a deed or title makes it fair game for the IRS to seize it.
A prenuptial agreement must be considered.
This is especially helpful if you live in a community property state. This contract will protect your interests from community property laws. This kind of contract will need the assistance of a lawyer. Discuss the benefits of this type of contract with your attorney to see if this is a way to protect your assets.
File your tax return as married filing separately.
Though filing separately means having to pay higher taxes, at least the IRS cannot get payment from you for your spouse's tax debt and you will not be involved with your spouse's IRS problems.
Originally posted 2007-11-07 08:04:02. Republished by Blog Post Promoter
Filed under Blog by IRS Tax Attorney
