Legal Question in Tax Law in California

divorce, bankruptcy and tax debt

I have a large tax debt shared by my spouse. I would like to take responsibility for the tax debt. My spouse has a retirement 401K. 1)Can I get a divorce (claiming the tax debt), declare bankruptcy on my own without it affecting my spouse's 401K and credit? 2)Will the IRS consider the 401K in an offer in compromise? We would like to settle our tax debt, which is impossible to pay off with penalties and interest accruing, and get divorced, leaving my spouse's 401K in tact, as my spuose has worked hard for it. 3)I would like to assume the tax debt and could use some advice for taking care of it. Offer in compromise, let it run out with statute of limitations, or bankruptcy?


Asked on 12/29/00, 6:14 pm

2 Answers from Attorneys
WILLIAM BRANDWEIN WILLIAM A. BRANDWEIN, A PROFESSIONAL LAW CORP.

Re: divorce, bankruptcy and tax debt

You don't give enough facts to receive an explanation that will cover your situation. Generally, if the debt is joint or is a community property debt, you won't be able to just assume the debt and get your spouse off the hook. You need to get to a specialist who can get all the facts from you and then render you the proper advice.

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Answered on 1/04/01, 12:51 pm
Shai Oved The Law Offices of Shai Oved

Re: divorce, bankruptcy and tax debt

I agree with the prior reply but you raise some interesting issues. First, the IRS won't just walk away from a debt where your wife would be liable. How much tax debt are you talking about and what other assets are there which could be exempt? How old is the tax and would it be dischargeable? Have you considering paying the tax debt without interest in a chapter 13? You should speak with a local professional or you can contact my office for additional information. Good luck to you.

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Answered on 1/04/01, 11:19 pm


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