Debts after Divorce Finalized?

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Old May 14th, 2012, 03:29 PM   #1
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Exclamation Debts after Divorce Finalized?

Writing for a friend, the couple is divorcing after a 9 year separation - she is European not a US citizen, strictly a SAHM during the 17 year marriage. Self-employed (but not working), he has many debts, including the IRS, will she be held liable to pay debtors once they divorce?

He filed Married Filing Joint on his tax return, although she was in Europe the past 9 years, which is illegal, forging her signature to save money on the tax return. She won't fight this, just wants a clean divorce. Thanks a lot.
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Old May 14th, 2012, 03:41 PM   #2
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Default Re: Debts after Divorce Finalized?

I wish to inform you that generally, the court tries to divide assets and debts equitably. Further the laws of the state where the divorce is taking place will determine division of assets. In community property states all marital assets and debts are divided equally. If joint return is filed with IRS then liability is also joint.

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Old May 15th, 2012, 12:48 PM   #3
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Default Re: Debts after Divorce Finalized?

She needs to file for divorce listing ALL the debts and assets of the parties. He is required to do the same.

Since they have been separated for so long, there is a good possibility she does not know anything about his finances, how much is owed and to whom. Had she filed for a decree of legal separation shortly after separating, then whatever debts he ran up would be his own.

As to filing a joint return, as long as he included her income, he was entitled to do so as long as she had not filed separate returns. As long as they were married and not legally separated, nor filing separate returns, that was his option.

It always difficult to give an intelligent answer when a third party asks a question for only with the full facts can a proper answer be given.
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