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Expired on : 6/3/2008 6:56 PM


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Divorce/Irs/Sale of house

While married my ex and I had 2 IRS tax liens filed against us one in 1993, one in 1995.  We divorced in 2000.  The liens started out at approximately $29, 000 each, but with penalties and interest were at a total of approximately $120,000 by the time of the divorce.  In the final divorce case, the order stated that that each party is awarded a 1/2 interest in the formal marital home.  I was given exclusive possession of the home until the youngest child reached the age of 18.  Each of us was given one half of the tax lien amount as a liability.  It stated that I was not to receive any credits for the mortgage, taxes, maintenance or insurance but that major upkeep was an expense of the joint tenants.  It also stated that each of us was eqully responsible for any debt of my company that was incurred prior to February 1999 for which either of us were found to be personally liable. 

I filed for bankruptcy in 2003 and the IRS tax liens were discharged. 

In 2003, the first of the two liens (so almost exactly half of the total debt) was discharged under the ten year statute of limitations according to the IRS laws.  The second lien was  due to discharge in 07/2003.  In 04/2003, the IRS levied my exes bank account and took approximately $60,000.  They then filed a release of lien. 

So he ultimately paid 1/2 of the total tax debt just as the divorce decree mandated.  I was never contacted in any way by the IRS, i assume because I my debt was discharged. 

Fast forward to today, we have the house up for sale.  Signed contract today with sale to close in 10 days. The mortgage that was at $88,500 at the time of the divorce has been paid down by me to $59,000 now.  The sale is for $310,000 so there is alot of equity at stake.  I get a certified letter hand written by him demanding 1/2 of the amount he was levied for in 2003, so $30,000 and he is demanding interest at "9-10%" per year and is demanding $45,000.  He is refusing to sign the contract unless I agree to pay him this sum. 

I don't feel that I owe him anything on the tax debt.  I discharged and suffered the severe consequences of having to file for bankruptcy and he ultimately only paid 1/2 of the total tax debt just as the divorce decreed.  Now he is basically saying that he wants me to pay him 1/2 of his half plus interest. 

In addition to this, his mother sued me (not him) for money that she claimed she loaned us during the marriage.  I couldn't afford to fight the lawsuit and she got an $80,000 judgement against me.  She foreclosed on one home that I owned (not him) and took it in the foreclosure, claimed that the equity in it was $40,000 and then got a deficiency judgement against me for the rest of it for $39,000.  Then she foreclosed on a piece of property that I owned (not him) and took that too.  That property was worth about $200,000 at the time.  She immediately quit claimed it over to the ex.  Since her claimed debt was incurred prior to Feb 1999 and I was found to be personally liable for it, doesn't he owe me half that debt, plus interest? 

What do you think of this whole situation?  Do I owe him for the taxes he paid when he ultimately only ended up paying 1/2 of the liens just as the divorce decreed?  Does he owe me for 1/2 of the debt his mother sued me for? 

Lastly there was NO hold harmless agreement in the divorce decree.

I need help and quick!!!!!


by loretta33   2 Posts   read more from user >>
Posted on 6/3/2008 6:56 PM

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Comments for "Divorce/Irs/Sale of house"  (2) (You must be logged in to answer)




I didn't say it in my first post, but it was in the divorce decree aside from the tax lien, that ANY debt that either of us was found personally liable for, we would each be equally liable for.  His mother's debt would fall under this.  Also, there is depo testimony in the divorce that he states she loaned him the money during our marriage (7 years before the divorce).  Based on this is why he owes me half.  Correct?

As far as the taxes go, the final judgement said " tax lien, 1/2 to wife, 1/2 to husband."  To date, he has only paid his half, no more., if he had paid any more than 1/2, I could see the issue.   The bankruptcy was in 2002 before the new reform laws and I was allowed to include them in my discharge.   There was nothing in the final judgement that said that I had to pay any money to him and there was no hold harmless agreement in the final judgement.
by loretta33   2 Posts
Posted on 6/24/2008 5:06 PM
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legally, you shouldn't have been allowed to discharge the liens in your bankruptcy - not sure how you got away with that.

Yes, if he sues you, you could very well be forced to pay half of what he paid, you agreed to pay the liens in your divorce - discharging the debt is not paying for it. He has legal grounds to take you back to court & get interest.

No, you do not have a right to go after him for what his mother sued you for, it wasn't part of your divorce settlement - it isn't his problem you couldn't afford to defend yourself.


I'm a family law attorney
by spaznskitz   2491 Posts
Posted on 6/4/2008 5:44 PM
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