Legal Question in Workers Comp in Wisconsin

business taxes and divorce

Recently divorced, exhusband owned a business. The judge in our divorce ruled that I was not responsible to pay any past due taxes on this business. WI Dept of Rev is now garnishing my wages and saying I owe everything.

Ex husband is in the Virgin Islands so they cannot get him.


Asked on 12/13/07, 1:59 pm

1 Answer from Attorneys

JAY Nixon nixon law offices

WI Marital Property--Business Taxes Collected from Non-Proprietor Spouse--Bankruptcy Relief

Whether or not divorced, creditors, including taxing authorities, can collect against the non-incurring spouse for marital debts. They can generally collect from all property including wages, for most debts incurred during the marriage, in any marital property state. Divorce judgements have no effect whatsoever upon creditors. Hence, creditors can pursue either spouse, regardless of to whom the divorce judge assigned the debt. They will generally first go after the easiest target, which is the closest former spouse, if the other one is out of state or in the Bahamas. They will also usually "follow the money" and go after the spouse with the most easily correctable assets. The spouse who is the victim of all this can try going back to family court for contempt if their "X" fails to follow the court's order regarding payment of debts. However, pending collection from the incurring spouse via threatened contempt, wage garnishments of the other spouse remain fair game in this scenario. An experienced bankruptcy and/or tax attorney might very well be able to obtain some relief for you in this scenario.

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Answered on 12/17/07, 5:30 pm


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