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How to Divide IRS Debts in Divorces

When you get a divorce, both your property and your debts will typically be divided. In this situation, the debts could be divided in one of several ways, depending on the circumstances of your divorce. When Internal Revenue Service tax debts are involved, this situation can become even more complicated. It is important to divide this debt in the most equitable fashion so that neither side is taken advantage of financially. The court could also play a role in this process.

Instructions

    • 1

      Divide the tax debt in a way that is considered fair by both you and your spouse as part of an out-of-court settlement. Some spouses avoid court so that they can avoid paying legal fees. If you and your spouse agree on how everything should be split up, this is often the easiest way to go about it. Sign a settlement document that outlines how the tax debt will be divided.

    • 2

      Allow the court to decide how all of the debt should be split up. If you and your spouse cannot get along and come up with a solution to the tax debt division, the court can decide it for you. The judge will take everything into consideration when making this decision. An equal amount of debt is usually assigned to each party.

    • 3

      Use the defense of innocent spouse relief with the Internal Revenue Service (IRS). With innocent spouse relief, you may be able to get out of paying for taxes that the IRS believes you are liable for. If your spouse lied about information on your tax return or withheld information about income without your knowledge, the IRS might let you out of paying your share of the taxes.

Tips & Warnings

  • Consult with an attorney even if you do not plan on going to court with your spouse. This way, your situation can be evaluated by a professional so that you are not taken advantage of.

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