Marrying into Tax Problems

IRS issues in your future spouse's history could become your problems too. Minimize your involvement. You don't want to pay tax debt that's not yours.

Joint accounts should be avoided.

Your funds should be kept in separate accounts. If the IRS opts to seize your bank account to pay for taxes and you and your spouse have a joint bank account, it will seize all of the funds. The IRS doesn't distinguish between "your" money and "your spouse�s" funds. It's a prolonged process to recover your part of the money. It is totally better to have separate accounts.

Assets should be kept under your name.

You should have assets you bought after you married titled only to you. This shows that you are the sole owner. The IRS can't seize this asset as settlement of the back taxes of your spouse. It's also essential not to add your spouse�s name to assets that you yourself owned before the marriage. If both of your names are on the title, deed, etc., then it is fair game for the IRS to seize to pay a tax debt.

Consider a prenuptial agreement.

This is especially helpful if you reside in a community property state. This contract protects your assets from community property laws. This type of agreement will need the help of an attorney. Discuss the advantages of this kind of agreement with your lawyer to see if this is a way to protect your assets.

Tax returns must be filed separately.

Though you'll be paying higher taxes by filing separately, you will not be involved with your spouse's IRS problems and the IRS cannot get payment from you for your spouse's tax debt.

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