Who Has to Pay Back IRS Debt After a Divorce in Illinois? 

 Posted on January 14, 2022 in Illinois Divorce

The decision to get a divorce is never one that is made with ease. In fact, for a lot of people, divorce is viewed as the very last option because of how intertwined the lives of a married couple are and how difficult it can be to separate everything after being married, finances included

While not every couple chooses to combine their finances, money matters are often a major topic of conversation during many divorces. From figuring out how to allocate the funds in bank accounts to deciding how to divide other assets like investments, there are many financial complexities to sort out during the divorce process

Tax Debt is Considered Marital Debt 

So, what happens to the money that you do not have? In other words, how does tax debt work when a couple that owes money to the IRS decides to end their marriage? 

In Illinois, tax debt is usually viewed as marital property, and marital property is often divided equally between both parties. However, IRS tax debt is usually regarded as marital property only if it was accrued at some point during the marriage

If your spouse incurred IRS debt on his or her own prior to getting married to you, then the state of Illinois awards the responsibility of that debt to the single person who accrued the tax debt before the marriage was legally recognized. This is because the debt is viewed as non-marital property under those circumstances, and nonmarital property is allocated differently than marital property

Marital Tax Debt in a Kane County Divorce 

In such a situation, with the help of a family law attorney or divorce lawyer, you may be able to make the argument that the IRS debt associated with each person should remain theirs, not be viewed as a collective debt between both parties. However, this is only one of many potential arguments that can be made in divorce cases where tax debt is owed to the IRS

In order to better understand your specific options and the potential outcomes of each, seek legal advice by reaching out to an experienced divorce attorney in Illinois.

Contact a St. Charles Family Law Attorney Today

Taxes are inherently a complex matter. Every year, when tax season rolls around, people grin and bear their way through the process of taxes. However, filing taxes and figuring out the division of debt liability when you are either in the process of getting a divorce or after finalizing a divorce can be incredibly confusing

Instead of trying to interpret the law on your own and making the situation more grueling for yourself, give Weiler & Associates, Inc. a call at 630-331-9110. As Kane County divorce attorneys, we have the experience and the know-how to help you navigate your taxes either during a divorce or after finalizing your divorce

Source: 

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm