Continuing divorce issue

[tgm]

I live in Virginia, in the Washington, D.C. metropolitan area. My former spouse defaulted on a car loan after we divorced. The car was purchased during our brief marriage. I had credit and he did not; so I became the defacto co-signer. Because of the the divorce, my ex refused to pay the finance company, so the loan accrued interest, penalties and late fees. Last year, the IRS attributed the defaulted loan as additional income to me. I tried to negotiate a compromise, but to no avail. In November 2012, the ITS placed a tax lien. I am working with a tax advocate service to arrange a payment plan. My accountant sugegsted that I sue. Can I sue my ex-husband for his share of this responsibility, which totals nearly $40K? Please advise.

 

[Proserpina]

I live in Virginia, in the Washington, D.C. metropolitan area. My former spouse defaulted on a car loan after we divorced. The car was purchased during our brief marriage. I had credit and he did not; so I became the defacto co-signer. Because of the the divorce, my ex refused to pay the finance company, so the loan accrued interest, penalties and late fees. Last year, the IRS attributed the defaulted loan as additional income to me. I tried to negotiate a compromise, but to no avail. In November 2012, the ITS placed a tax lien. I am working with a tax advocate service to arrange a payment plan. My accountant sugegsted that I sue. Can I sue my ex-husband for his share of this responsibility, which totals nearly $40K? Please advise.

Was he ordered to pay the debt as part of the divorce decree? If yes, you can take him to court and file for contempt (though as a practical matter that won't help your immediate financial situation).

If not, you'll have to sue him in civil court. You know your ex though - assuming you successfully obtain a judgment against him, will you actually be able to collect?

 

[tgm]

Thank you! I will sue. My ex will not likely comply, but this matter affects my ability to remain gainfully employed. I have a federal security clearance, and it is required for my occupation. If I'm able to win a judgement, it will have to attach to his employment. To answer your initial question, our divorce degree did not specify the payment of debt. Again, thanks. You answer helps significantly.

 

[davew128]

I don't see a tax question here. You were obligated to pay the debt. You did not. It was cancelled and the law is clear that the cancelled debt would be income to you.

 

[Proserpina]

I don't see a tax question here. You were obligated to pay the debt. You did not. It was cancelled and the law is clear that the cancelled debt would be income to you.

Go read the post again.

With any luck you'll grasp why the OP posted it here.

 

[davew128]

Go read the post again.

With any luck you'll grasp why the OP posted it here.

Let me repeat myself for those of us who don't understand English: THERE IS NO TAX QUESTION HERE.

With any luck you will understand why it doesn't belong here.

 

[LdiJ]

Let me repeat myself for those of us who don't understand English: THERE IS NO TAX QUESTION HERE.

With any luck you will understand why it doesn't belong here.

She got a 1099-C Dave....she is working with the advocate's office on a payment plan. There are tax issues here.

 

[davew128]

She got a 1099-C Dave....she is working with the advocate's office on a payment plan. There are tax issues here.

And she asked the forum about suing her ex, not about the payment plan or the taxability of the income.

So I will repeat myself FOR THE THIRD TIME: No tax question was raised here.