Help with Ex-Husband's possible Tax Debt

by **cheeky321** on Tue Sep 29, 2009 11:58 am

Hi I will try and not be too long winded.

my husband and I have been seperated for nearly two years now, and throughout our marriage we kept our own bank accounts. I am in full time employment and on PAYE so have never had a personal issue with tax.

However I have just been informed by a mutual "friend" that my ex apparently has not paid any tax since becoming self-employed and that there "could" be an on going tax investigation.

I was therefore wondering what the implications could be for me?

1) If he is investigated how long does this process take?
2) Would I be liable for any of his tax debt?
3) Would I be forced to sell my house (although he has not lived here since April 2008 and not paid a penny towards to mortgage when he left - his name is still on the deeds)

I'm worried sick as we are in the process of divorcing and sorting out financial issues and we both have a great deal of debts anyway, he is already going after me to pay all the divorce costs and I really am at the end of my tether as I just can't afford it anymore and if I then get stuck for half his tax bill I think my only option would be to go BR which is something I am trying me hardest to avoid...

Any help would really be appreciated.

by **robbob** on Tue Sep 29, 2009 12:16 pm

Hello cheeky

You will not be personally liable for any of his debts/tax debts - i am presuming you have not been included as a "partner" in his business as far as the taxman is concerned.If you were a partner you would know about this as you woukld have tax returns tax correspondence etc so it unlikely to be the case.

Obviously if he owns half the house and has debts there may be an issue here - i would recommend seeking specific advise from citazens advise / solicitor as to where you stand with this regard.
The less equity there is in the house the less of an issue this is likely to be.

Also be a little careful that you did not have any unused joint accounts - credit cards etc that he may be able to draw down on.

It is probably in your interests to settle everything as soon as possible - sometimes individuals like this can be very scheming and he may have a good reason for dragging things out. If you suspect this to be the case it may be worth taking less/paying a little extra just to get everything sorted as peace of mind is concerned.

by **cheeky321** on Tue Sep 29, 2009 12:36 pm

Thanks Rob

Nope I am not a partner in anything. We have one joint bank account which has been frozen and a joint credit card which I have control of (he has stopped paying me his half towards that, but I would rather pay it myself than to owe money on it)

It is the house that is the main issue, there is probably 40,000 equity in it, so can i assume the taxman can only ask for half of that, ie 20,000 and would I be given first refusal to come up with this money does anyone know?

Also I can buy the equity does that mean his name would automatically come off of the deeds?

I have a solicitor dealing with the dirvorce but ex is really dragging it out, cross petitioning, not replying with full financial disclosures (now i have learnt about a possible tax issue I can guess why).

If he is investigated does can anyone advise me what the proceedure is and how long it will take? as I am hoping to get my divorce finalised before the taxman comes a knocking................

It's quite a worrying time (although it doesn't seem to have stopped him enjoying his life!!)