Opinion ID: 2025844
Heading Depth: 2
Heading Rank: 6

Heading: Ray's Income Tax Liability

Text: Ray asserts Donna should be responsible for some of his income tax liability for 2003 and 2004. Donna filed separate tax returns in 2003 and 2004. Ray owed $14,000 in income taxes for these years because he failed to pay his quarterly self-employment taxes. We conclude it would be inequitable for Donna to share in the responsibility for Ray's tax obligation under the circumstances. Ray's tax problems are self-imposed and largely the result of imprudent business practices adopted to minimize the amount of funds available to satisfy a personal judgment against him. While Ray neglected his tax obligations, Donna paid her tax obligations from her wages. Cf. Duckett v. Duckett, 27 Mass.App.Ct. 1164, 539 N.E.2d 556, 557 (1989) (holding the judge could reasonably decide to leave each marital party to his or her debts in view of the finding that the husband had been profligate in incurring personal and business debts, while the wife had been fiscally responsible); Carter v. Carter, 261 Neb. 881, 626 N.W.2d 576, 580 (2001) ([A]n innocent spouse who has filed separate tax returns, and paid his or her taxes in a timely fashion, should not be forced to share in any statutory penalties for the late filings of a dilatory spouse. (citing Meints v. Meints, 258 Neb. 1017, 608 N.W.2d 564 (2000)). The tax debt assigned to Ray, which ultimately inheres in the division of all the property, is only part of the overall debt distribution, and the particular circumstances of the tax obligation become a factor that benefits Donna in ultimately determining an equitable distribution of all the property.