Innocent Spouse Relief

Divorce can create a myriad of complicated issues, and financial questions can be some of the most complex of all. The influence of divorce on tax problems is significant, and it can be quite confusing to figure out exactly what the regulations state.

The general rule for debts of divorcing couples is that there is joint liability. Because the two people were an entity from a legal standpoint, they are both held responsible for the repayment of debts and taxes, among other things.

This has significant implications when you consider the possibilities of one spouse incurring penalties or doing something illegal. For example, if one spouse is responsible for filing the tax return for the couple, and they make omissions on the tax return and end up owing penalties, the innocent spouse can file for relief.

In the event of a separation, the innocent spouse relief will protect the person that did not file the return from having to pay for the tax omissions. The filing spouse will bear the burden of repayment for the tax debt. Though it is unlikely that all omissions would fall under this category, many of them will, but both people are held jointly responsible for all debts that do not qualify for innocent spouse relief.

Contact Us

If you are getting a divorce, are considering a divorce, or have questions about tax relief for an innocent spouse, contact the West Palm Beach divorce lawyers of Eric N. Klein & Associates, P.A. by calling 561-353-2800.