In our agreement it states we will split any tax refund or tax liability from the final year we filed jointly. Since it was 1099 income, marital norms were for taxes to be set aside and paid back to the family joint account at the end of the year. My ex chose to spend that money. I adjusted the 50% of the refund given accordingly, but am now getting letters that she is owed the full 50%.
Is this correct? While this scenario is not specifically called out in our agreement, it seems to go against the spirit of it. If I stopped paying taxes and owed tens of thousands in back taxes, would my ex be responsible for splitting that liability with me? I assume not…
How would a mediator and/or the courts rule in this matter?
If you have a final and fully executed separation agreement or a permanent court order addressing this and the document says to pay your spouse 50% of the tax refund, you are to pay her 50% of the total refund.
Without it explicitly stated in the final binding document that you can deduct taxes that were to be set aside, you cannot do this.
If you stopped paying taxes and owed tens of thousands in back taxes during a year in which your final separation agreement or court order says you are to divide the refund or liability, then yes, she would also be responsible to pay 50% of the total amount owed.
Anna Ayscue
Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest
Rosen Online | Unlimited confidential access to a North Carolina attorney for $199/mo - click here
The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.