The divorce decree assigns responsibility between the divorced parties for debts. You will be liable after divorce if you were liable to the IRS for tax debt before divorce. That said, the court can make your ex-spouse responsible which is enforceable through the courts. The IRS can still come after you.
However, as a general rule the divorce decree does not bind creditors, including the IRS. You will be liable after divorce if you were liable to the IRS for tax debt before divorce. That said, the court can make your ex-spouse responsible which is enforceable through the courts.
Can a divorced spouse still owe taxes to the IRS?
Unfortunately, if you have joint tax debt with your ex-spouse, this may not be the case. While your divorce decree may state who will pay your tax debt to the IRS, the IRS is not bound by the divorce decree and will continue to try to collect the tax liability from both of you.
What happens to joint tax debt after divorce?
Ignoring IRS requests for payment will not make the joint tax debt go away after your divorce. The IRS is authorized to pursue collection of the tax for up to 10 years from the date the return is filed or the date the agency finalizes an audit – whichever is later.
Is the IRS bound by a divorce decree?
While your divorce decree may state who will pay your tax debt to the IRS, the IRS is not bound by the divorce decree and will continue to try to collect the tax liability from both of you. Fortunately, in some cases, innocent spouse relief can remove the tax liability from your name.
How are back taxes divided in a divorce?
If property and debts are divided evenly between spouses, then your tax debt (including back taxes) is also divided evenly and each of you is required by law to pay your share. Settlements are not always equal, however, and sometimes one side will argue to pay more tax debt in order to also receive more of the share of the property.
