Legal Question in Family Law in Maryland
Breach of seperation Agreement
My wife had stated in our seperation agreement that all tax returns will be equally divided amoung both parties. She did this with state tax, but the federal tax was all returned to here due to her filing for a injured spouse. I owed money to the IRS. At first the IRS keep the full amount of the joint refund, so she filed a claim to get her portion back. They (IRS) were not at liberty to divide it up so they sent the full amont of the refund to her. Now she will not give me my part of this money owed to me. If the IRS had keep the full amount as first done, then I would have had to pay half to her. So it is only right that she should pay me my part of this refund since she got it all refunded to her.
1 Answer from Attorneys
Re: Breach of seperation Agreement
If I understand your question correctly, the IRS withheld a portion of the tax refund due to you and your wife because of a prior tax which you, and not your wife, owed. You have a separation agreement in which you agreed to divide all tax refunds, and your wife retained the entire refund minus the part withheld for your debt. If she had given you half of the amount received, it seems to me that she would have been paying half of your debt. If your debt,which was withheld from the refund,equalled or exceeded one half of the refund which was otherwise due, I would say she owes you nothing. If the prior debt was less than half of the refund due, she should owe you some part of the refund. For exammple, if your joint refund for the year 2000 was $1000, and your debt, which was withheld, was $200, and the net refund was $800, your wife should have kept $500 and given you $300. If the IRS sent your wife the full amount of the refund, and credited none towards your debt, and you still owe the entire amount of your tax debt, she should pay you half of the refund,which you should use to pay your debt.