Innocent Spouse Doctrine
Tax Fraud and Innocent Spouses
Generally, when spouses file tax returns jointly, each spouse is liable for any understatement on the jointly filed return. This means that, for example, a husband will be held liable if his wife understates her income, and vice-versa. In a sense, this places a burden on each spouse to ensure that the other spouse’s income is reported correctly.
But what if one spouse hides income from the other? Individuals that can convince a court that they did not know of their spouse’s unreported income when they filed the return may be considered “innocent.” Innocent spouses will not be prosecuted by the taxing authority. But if the innocent spouse benefits from the unreported income, that spouse still may have to contribute to the tax debt. Additionally, in a divorce action, a matrimonial court may distribute liability for the debt between the spouses without regard to the innocent spouse rule.
Long Island Divorce Attorneys
If you have any questions about Family Law, Divorce, or other legal issues, the attorneys at the Law Firm of Vaughn, Weber & Prakope, PLLC can help. Call our office at 516-858-2620 today.
Temporary Maintenance Awards During Divorce.
Divorce actions can take years to resolve. During the course of a long proceeding, a financially dependent spouse, suddenly cut off from the other spouse’s support, may have a hard time making ends meet, even though that spouse should (and will eventually) be awarded support payments from the wealthier spouse. New York law allows a remedy for such situations. Courts may order a wealthy spouse to make payments to a financially dependent spouse until the divorce action is resolved and more permanent payments are determined. Such a payment is called “temporary maintenance,” and is calculated according to a formula set out in New York’s Domestic Relations Law.
Generally, the formula is as follows: 20% of the dependent spouse’s yearly income is subtracted from 30% of the wealthier spouse’s yearly income (up to a statutorily determined cap of $500,000). Then, the dependent spouse’s yearly income is subtracted from 40% of both spouse’s combined yearly income (again, a $500,000 cap is applied to the wealthier spouse’s income). The temporary maintenance award will be the lower of these two numbers.
For example, assume that the wealthier spouse’s income is $100 per year, and the dependent spouse’s income is $50 per year. 20% of the less wealthy spouse’s income ($10) is subtracted from 30% of the wealthier spouse’s income ($30). The result is $20. Then, the less wealthy spouse’s income ($50) is subtracted from 40% of the spouses’ combined income. The spouses’ combined income is $150. 40% of $150 = $60. Subtracting $50 (the less wealthy spouse’s income) from $60 (40% of the spouses’ combined income) leaves $10. The temporary maintenance award will be the lower of these two numbers – $10. This amount is the temporary maintenance payment the wealthier spouse would be ordered to pay the dependent spouse in this situation, until the divorce action is resolved. The court may order different amounts in certain high income cases, or take into account other factors as is it sees fit.
If you are considering initiating a divorce action or are already involved in a divorce action, and would like to speak with an attorney, The Law Firm of Vaughn & Weber, PLLC is here to assist you. Call (516) 858-2620 to speak with a Family Law Attorney today!
*Contributions to the research and preparation of this blog were made by Jason Mays, J.D. (awaiting admission in NYS).
Residency Requirements
Not just anyone can get divorced in a New York State Court. Only litigants meeting the residency requirements set out in the New York State Domestic Relations Law Section 230 will fall within the jurisdiction of a New York State Court. If litigants do not meet these residency requirements, their divorce cases will not be heard by a New York State Court.
Domestic Relations Law Section 230 sets out five possible ways of meeting the residency requirement. If satisfied, any one of these requirements will ensure that a litigant’s divorce case falls within the jurisdiction of a New York State Court. But, in order to avoid wasting time or other resources, it is important to ensure that at least one of these requirements is met before beginning a case.
Requirement #1
(1) One spouse lived in New York State on the date the divorce action began, and
(2) for at least one continuous year immediately prior to the date the divorce action began, and
(3) the marriage was performed in New York State.
Requirement #2
(1) One spouse lived in New York State on the date the divorce action began, and
(2) for at least one continuous year immediately prior to the date the divorce action began, and
(3) the spouses at some point lived together in New York State as a married couple.
Requirement #3
(1) One spouse has been a resident of New York State for one continuous year immediately prior to the date the divorce action began, and
(2) the cause of action arose in New York State. (The “cause of action” is the event or series of events that gives one spouse grounds to seek divorce.)
Requirement #4
(1) The cause of action arose in New York State, and
(2) both spouses are residents of New York State at the time the action arose (no time requirement).
Requirement #5
Either spouse lived in New York State for at least two continuous years immediately prior to the date the divorce action began.
If you would like to pursue a divorce in New York, and have questions about residency requirements or other issues, the Law Firm of Vaughn, Weber & Prakope, PLLC, is here to assist you. Contact us at (516) 858-2620 to arrange a consultation with a divorce attorney.
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