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I am 59 and was recently married. I just learned he is in debt for over $200,000. As of right now, all of our financial stuff is separate. If he passes away, am I responsible for his debt even though it was acquired before our marriage? Also, are we better off filing our taxes separately?
-M.
Dear M.,
Getting married without telling your spouse you have $200,000 of debt is a huge breach of trust. I implore you to think carefully about whether you want to stay married to someone who would keep debt of this magnitude secret from you. But more on that shortly.
Generally speaking, you’re not responsible for debts your spouse incurred before you married. This applies regardless of whether you live in a common law state, where it’s easier for married couples to keep assets and liabilities separate. It also applies if you live in a community property state, where any assets or debts acquired during the marriage are assumed to be jointly owned. Because your husband brought this debt into the marriage, you shouldn’t be on the hook for paying it, even if he died.
I can’t tell you whether you’d be better off filing separately, given the substantial penalties involved. Only a tax adviser can tell you that. What I can tell you is that even if your husband owes the IRS, you wouldn’t be liable since he racked up that debt before you married. If you filed a joint return and had your refund intercepted, you could apply for injured spouse status. Then you could collect your half of the refund.
Now back to the elephant in the room, which is the fact that your new husband didn’t tell you about the $200,000 he owes. I have so many questions. Do you know how he acquired the debt? Is he current on payments? Did he tell you about his debt, or did you discover it on your own?
There are a lot of reasons someone could acquire massive debt. Obviously, if it’s the result of a major illness, that’s a lot different than, say, if…
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