What to Do If You Married Into Tax Problems

IRS issues in your future spouse's history could become your problems too. Here are a few things you can do to minimize your involvement from the underreporting or over deducting that your spouse has done. You do not want to pay debt that's not yours.

Don't co-mingle your money.

Your money should be kept in separate accounts. If the IRS chooses to seize your bank account to pay for taxes and you have a joint bank account, it will seize all of your money. The IRS doesn't distinguish between "your" funds and "your spouse'¯&s" funds. It may be possible to recover your portion of the funds from the IRS but it'll be a prolonged process. It's totally better to have separate accounts.

Assets should not be co-owned.

Properties bought before and during your marriage must be titled only to you, proving you are the sole owner. If your spouse's name isn't on the title, then the IRS can't seize it to pay for your spouse's debt.

A prenuptial agreement must be considered.

If you reside in a community property state, a prenuptial agreement is a good way to safeguard your assets. With the assistance of an attorney, your interests are safeguarded from community property laws.

Tax returns must be filed separately.

Though you will pay higher taxes when you file separately, you will not be liable for your spouse's IRS issues and the IRS cannot get payment out of you for your spouse's tax debt. Additionally, if you were to need to do the unthinkable, file bankruptcy to rid yourself of tax debt, if you have kept your spouse uninvolved, only the liable spouse will need to file bankruptcy. This keeps the other spouse uninvolved and potentially allows them to maintain their good credit. This may keep the bankruptcy from being as hard on you credit wise than it otherwise would be.

Darrin T. Mish is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel's Bar Register of Preeminent Lawyers. His passion is providing IRS help to taxpayers with both individual and payroll tax problems. He teaches attorneys, CPAs and Enrolled Agents in the finer aspects of IRS representation all around the United States. He can be reached at his website at http://www.getIRShelp.com