Legal Question in Tax Law in California
How to protect future spouse from my tax liability.
I am going to become engaged and I presently have significant tax liability which IRS and FTB both have liens against me. What is the proper procedure to protect my future wife from incurring these liabilities legally? I don't want the IRS or FTB to garnish her wages as the result of our marriage.
2 Answers from Attorneys
Re: How to protect future spouse from my tax liability.
Your future wife cannot be held liable for your debt incurred before the marriage, but any property you acquire during the marriage might be subject to the tax liens. Therefore, you should avoid joint ownership of property. Keep separate bank accounts and file separate tax returns. They can go after your property but not hers.
The IRS and FTB might be open to an "offer-in-compromise". Some of the debt might be dischargeable in bankruptcy too. Consult a bankruptcy attorney to see if any of this debt can be discharged in a Chapter 7 or Chapter 13.
Re: How to protect future spouse from my tax liability.
you should also consider a premarital agreement that deals with these issues.