If you know there are IRS problems in your future spouse�s past, then they could become yours too. Here are a few things you can do to help minimize your involvement from the underreporting or over deducting that your future spouse has done. You don't want to settle tax debt that's not yours.
Joint accounts must be avoided.
It is best to keep separate bank accounts because the IRS can seize a joint account as payment for your spouse's tax debt. The best way to avoid this situation is by having separate accounts because your money's recovery will be a long process.
Assets shouldn't be co-owned.
You should be the sole owner of assets purchased prior to and during the marriage, which means they must be titled only to you. If your spouse's name is not on it, then the IRS can't seize it to pay for your spouse's tax debt.
A prenuptial agreement must be considered.
If you reside in a community property state, a prenuptial agreement is a good way to protect your properties. With the assistance of an attorney, your interests are protected from community property laws.
Tax returns must be filed separately.
Though you will pay higher taxes when you file separately, you will not be liable for your spouse's IRS issues and the IRS cannot get payment out of you for your spouse's debt.
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