Unpaid Taxes, Un-filed Taxes, and Outstanding Tax Obligations One of the ticking time bombs that can explode after a divorce is finalized is the issue of unpaid or unfiled joint or individual taxes. If you and your spouse file joint taxes during the marriage and you have any concern that…
While the general rule is that your spouse’s individual debt does not become your debt just because you’re married, in the case of medical bills there are situations where one spouse may be liable for the other spouse’s medical debt. The medical debt exception arises from the common law rule…
The IRS treats canceled debt as income. This means that when a creditor cancels or forgives debt the amount of the canceled or forgiven debt is treated as income to the person forgiven. For example, if you and spouse settled joint credit card debt for less than the amount owed…
When parties are separating or divorcing one of the key issues to be addressed is any credit card debt incurred during the marriage. As a general rule, marital debt is joint debt as long as the debt is incurred for “marital purposes” or “family expenses”. Here are some examples where…