However, injured spouse only guaranties her 50% of the refund. What if she has way overpaid witholding and is due a BIG refund? Better to file seperately and protect the entire thing. She can have her accountant run the numbers BOTH ways and see which works better for her to get her refund back.
And, yes, she should continue to have all her assets seperate. My hubby doesn't pay anymore, as of this year, but I had always kept my assets seperate in case he were ever disabled and unable to work. People DO get sick, and in intact families, nobody "guaranties" that part of the household income may not fluctuate up or down some months, or stop altogether when a person is ill.