Pay separate debts with marital funds (new question)


#1

Hi,

I married in Jul 2009, separated in 2013.

In 2012, my (ex-)wife had an IRS audit for her declaration of 2008 (for her own business incomes).

They considered in 2008 she didn’t declare all her incomes and she had to pay 10,250 to the IRS, but she paid that using our marital funds (form our common checking account). Is that right that the 10250 are a separate debt paid with marital funds ?

Can I claim half of that during the equitable distribution ?


#2

If your wife paid off separate debt with marital funds, then you are entitled to claim a portion of that in equitable distribution. This is the same concept as if she had a vehicle prior to the marriage, but you used marital funds to pay off the vehicle loan.


#3

Thank you very much, actually we paid off her car too.


#4

Another question, for example we paid 500$/month for her car (separate property) with marital funds for 1 year, would I be entitled of 3000$ (6000/2) or would I be entitled of half of the principle paid ?


#5

It would be different for a car because cars are depreciating assets. Some portion of the car would be considered marital, however you can’t simply total the car payments up and use that amount. In equitable distribution, all assets must be given a fair market value as of the date of separation - so you would look at the FMV of the car on your date of separation. Some portion of that value would be considered marital. The car payments aren’t indicative of the value of the car at the date of separation.