-
debts in divorce
My bestfriend and her husband are divorcing. They were married in Texas but she is filing in Kansas. He has not paid anything in support for their 2 kids. He had agreed to pay for the car he bought (in his name that he got for her to drive while they were married) and to pay for the insurance so she would have a car to drive the kids to school and the sitter's. He never paid the car so he told her to return it to him because it was being repossessed. So she did. The finance co. is after him regarding this car ( she's not sure if he turned it in) and now he's threatening to sue her for the amount ($16,000.00) owed on the car. Can he do this? He's also saying that he NOT her is going to claim the kids on the income tax even though he hasn't supported them in any way. She is working to support these kids by herself. He has his own cell phone business, but his business partner has put everything in his name so that he won't show any income.
-
Debts in Divorce
Usually, debts are divided in the same manner as assets are divided, through the divorce process. So the issue of car would normally be resolved through the divorce.
She can discuss with her lawyer whether or not she should seek an order dividing the tax deductions for the children. If they both claim the kids, the IRS will investigate and apply its own standards to determine who is entitled to the deductions. (That may mean that both parents are audited.)
-
debt
Could you please clarify something for me. Does a debt have to be in both spouses names for both of them to be held liable? If the husband takes out credit only in his name is his wife held responsible for said debt, too? Or does her name have to be on the debt, too?
-