Legal Question in Family Law in California
Divorce
I have a friend I want to help. If he is still legally married can his wife sign his name and her name to a document to cash in a 401k retirement??? Part 2 of the question...Is he responsible to the IRS for the penalty tax that she never paid? It seems to me that she used forgery to obtain all of their joint retirement???(both of their names were on the retirement account)
They have been seperated for 2 years...If he obtains a credit card in his name only and she is not listed as a signer and she takes his card and runs up to the limit...is he responsible to pay the card company if she stole the credit card from him to charge on it to the limit?
Than You
3 Answers from Attorneys
Re: Divorce
No, the wife cannot do that. It's fraud.
As to the IRS: The IRS will go after whomever it believes to be the responsible party. During the divorce process, an order can be obtained stating that she is responsible for the penalty tax.
As to the credit card: Same thing. The credit card company is going to go after him. But he can go after an offset against her during the divorce. This means that if they have a house, he can get more money out of it than she will in order to pay off the credit card.
Tell your friend to consult with an attorney.
Re: Divorce
No, the wife cannot do that. It's fraud.
As to the IRS: The IRS will go after whomever it believes to be the responsible party. During the divorce process, an order can be obtained stating that she is responsible for the penalty tax.
As to the credit card: Same thing. The credit card company is going to go after him. But he can go after an offset against her during the divorce. This means that if they have a house, he can get more money out of it than she will in order to pay off the credit card.
Tell your friend to consult with an attorney.
Re: Divorce
I agree with Ms. Healy. The wife cannot do this and in the divorce the tax penalty should be assigned to the spouse who withdrew the funds. If you are a good friend, which it sounds like you are you need to get your friend to an Attorney ASAP.
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