Legal Question in Family Law in Texas
Tax liability of both spouses on wongful death settlement.
I married a woman in October and we both immediately saw that the marriage was a mistake. It is February now and we are in the process of getting a divorce. In the time we have been married she received a $74,000 settlement in the wrongful death of her mother in a nursing home. She says that her attorney told her that this money was not subject to federal income taxes. Is this true? Secondly, will I be responsible for any of the taxes owed if it is not true. I have not received any of the money, nor do I want any of it.I just don't want to be liable for taxes on money that did not received.
Thank you
1 Answer from Attorneys
Re: Tax liability of both spouses on wongful death settlement.
I would contact a certified public accountant immediately.
The CPA might suggest filing a separate tax return for the year the money is received as "married filing separate" and you should not be liable for her taxes if any.
Best of luck to you!
Fran Brochstein
713-847-6000