Splitting Interest Deduction on Taxes

North Carolina Divorce Law Divorce and Separation Answers
1

Hi,
My husband is being very hostile about separating assets and “will not support the divorce.” This means not cooperating and punishing me and not agreeing to anything. I cannot trust him to jointly file assets with me for 2009 and split the refund.

We have two properties and 3 mortgages. All mortgages are in both our names, but his name is always first.

  1. If he does not agree to share the interest deductions 50/50 with me for every month in which we both paid or were still living together, can I still take my half of the interest deductions on my taxes?
  2. What if I claim half the interest deductions and he claims all of them? What will happen with the IRS? Will he be in trouble, or will I be in trouble?
  3. Or can he take all of the interest deductions himself, leaving me helpless? If so, what actions can I take?
  4. Do you have any other advice for me regarding how to protect myself against him unfairly taking tax deductions for our interest? Should I simply notify him via email that I intend to take my 50 percent, or not tell him at all?

Thank you very much,
Wisconsincheese

2

First off, I’m not a tax attorney or accountant, so confirm this information with one of those professionals.
Generally speaking, whoever’s name is the account that pays the interest on the loan will be the one that can claim the deduction. That may change in the event you are actually divorced, as the property needs to be a principle residence, in order to claim the deduction. The best advice I can give you is to consult publication 504 of the IRS codeso do consult an expert in this area.