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Question: I have a home and other assets. I recently married and then found out my husband had not filed taxes for 10 years — and owes the IRS $38,000! Is my home, bank account, and assets subject to a lien? Are they at risk? Am I responsible for this debt?

— Debra in Texas

Howard Dvorkin answers…

Even though I’ve been a CPA and financial counselor for more than two decades, I prefer to consult tax experts on questions like these — just to confirm I’m right.

In this instance, my instincts proved correct, says Don Markland, chief revenue officer for the Tax Defense Network. Debt.com partners with Markland’s firm because of its experience and adherence to Debt.com’s Code of Ethics.

Says Markland…

The easy answer is yes, Debra is liable. Texas is a community property state, and debt created during the marriage is owed by both spouses.

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Of course, when it comes to taxes, nothing is easy. So let’s break it down.

What are community property states?

If you live in one of these states — and there are only nine of them —  all the property and debt acquired during a marriage belongs to both spouses. Texas is one such state. (The others are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Washington, and Wisconsin.)

“Income or assets created during the marriage are subject to collections,” Markland says. “Your income and bank accounts are at risk.”

What about before the marriage?

“Generally, premarital assets are not community property and can be protected,” Markland says. Please note the word generally. That’s because other factors come into play. Here’s just one, Debra: Are you filing jointly or single?

“This will greatly influence your returns,” Markland says.

What to do next

First, you should read the Debt.com report that touches on this very topic. It’s called If My Spouse Owes Back Taxes Am I Liable?

While that report is, in my humble opinion, the best and cleanest explanation I’ve yet seen, it’s still not a pleasurable read. That leads me to warn you…

Because tax issues are complex, and because you live in a community property state, you need to consult an expert. Whenever I tell people this, they usually express fear: How much will this cost me?I tell them: You will indeed pay a fee, but if you consult a reputable expert, it’s almost always less than it would cost you to try it on your own — and always less than the cost of ignoring the problem until it catches up with you.

Concludes Markland: “We’d love to talk to Debra and walk her through this. It can be complicated, but we have experts who handle this all of the time.”

I can vouch for that.

Have a debt question?

Email your question to editor@debt.com and Howard Dvorkin will review it. Dvorkin is a CPA, chairman of Debt.com, and author of two personal finance books, Credit Hell: How to Dig Yourself Out of Debt and Power Up: Taking Charge of Your Financial Destiny.

 

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Meet the Author

Howard Dvorkin, CPA

Howard Dvorkin

CPA and Chairman

Dvorkin is the author of Credit Hell and Power Up, founder of Consolidated Credit, and Chairman of Debt.com.

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Article last modified on May 25, 2018. Published by Debt.com, LLC . Mobile users may also access the AMP Version: If My Husband Owes Taxes, Do They Come After Me? - AMP.