My question involves bankruptcy in the state of: Arizona
Short version, am I entitled to half the tax refund?
We were married April 16, 2011. After finding out my husband was being sued, he filed for chapter 7 in August 2011. I did not file, all debts were separate and before the marriage. BK was discharged in November (I think?). In the interest of calculating the possible refund due, I made approximately 50,000 last year, he made approximately 10,000. Our total state and federal refund was $3737. I have one son from a previous relationship claimed as a child tax credit. We both had education credits.
Because my husband did not make enough for child support last year, he has arrearages. They are more than the tax refund. I had assumed that the IRS would seize our joint refund and give it to back child support. They did not because he had filed bk. Not knowing this would happen, I had filed injured spouse and given my bank information for deposit. The IRS deposited the entire amount of the refund in my account. I immediately contacted the lawyer who handled his bk. They said I was entitled to half so I could either mail the trustee a check for half and be done or mail a check for the entire amount and expect my portion back in 10 days. They said the Trustee would have to send his half to the back child support.
I mailed half with a letter explaining the situation. I got a letter from the Trustee saying that I should have turned over all of it. I was not owed any of it because it is community property and now belongs to the estate. She did say that it was prorated so I could send in a check for the prorated amount and keep the rest. This was approximately $500.
I called the lawyer again and she says the Trustee is wrong, they owe me money. That this was taxable income before the marriage.
Before I call the Trustee and tell her she is wrong, does anyone have any advice, law quotes, anything that will help my case without bringing up a dispute in court? It's not really worth it to pay the lawyer $1000 when all the Trustee wants is $500. I guess I'd just pay it, but the principal of the matter irks me.
I have several arguments in mind, first being the IRS says AZ injured spouse gets 50%. Second is that I was the breadwinner and entitled to my portion of refund as explained in several cases I found, among them are some of these: http://www.abiworld.org/CS11/materia...useDilemma.pdf. Last was that the money would just be going to back child support because it takes presidence and I am not ordered to pay his child support therefore they can only take the 50%. Any of that make sense?