Taxes in Settlement

My wife and I recently came up with a settlement agreement (Stipulation for Judgment), in CA. The original agreement was that we would file for taxes jointly so that I would get the return because I'm making an equalization payment to her of $20,000 that is not tax deductible for me (because she doesn't want to show the additional income because she is going to school and want the grants). Her lawyer changed it to we would split the return. I didn't complain. Then my wife said that we had to file separately so that she doesn't show my income. She said she would loose thousands in grants and housing support. I had the tax section of the agreement changed. However, it changed from something like we would file jointly and split the return or taxes due to we will file separately and each pay our own taxes due or receive our own refund. Well, I thought it wouldn't be a big deal and had it changed and we signed it before I finished my taxes. However, I still have the document (to notarize). Now that I've finished my taxes I realize instead of us getting a refund of about $1000 and splitting it (original agreement), I myself owe about $2000+. The lawyer that helped me with the paperwork said originally that this was a pretty good deal for me. Is there anything that can be done about the taxes at this time or should I just let it go? I had figured out all kinds of things that I could sell to get most of the $20,000, but now I have to come up with another $2000 for Uncle Sam that I just don't have. Had I known it would be like this I would have made sure the agreement still said that we would split the refund or taxes due, like it used to, at least. Is there anything I can do? Is it worth going back to her and trying to change it, or is it not worth the risk that she might just say forget it? I guess it's disappointing that she keeps changing the deal and when I tried to help her out, I ended up incurring a lot more debt. It would have been fair for her to pay the difference when she changed the deal or at least to split it.

[randalljd]

Hi--posters here normally do not give tax advice on this site; you may check with the IRS directly; or your accountant; or the H & R Block web site for 20 dollars: HR Block Tax Advisor link --

http://www.hrblock.com/taxes/product...p?productId=44

I wasn't asking a tax question. I was asking advice about whether there is anything I can do to change the situation. If so, what and is it worth trying?

You can ask her to pay what she would have paid when you first agreed. Or even sue her in small claims for the extra you now have to pay.

Ah, Thank you. I wonder what the chances are that she would pay if I ask, and I wonder what chance there is that I would win in small claims court. I wonder if it's worth going to court for $2000. At least I found out the other day that since I have a signed notarized copy of the agreement, it's not likely that she can back out of the deal, so I guess there's no harm in asking if she'll to the right thing and split the costs with me, since I tried to help her. Unfortunately, I don't think she has any desire to do the right thing, or we wouldn't be where we are.