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I am not on the mortgage and my soon to be exspouse wants to short sale. Am I responsible for taxes? We aren't divorced yet.

Naperville, IL |

I am not on the mortgage and have not lived in the house for one year. I stopped paying any portion of the mortgage about 6 months ago. Is there a form I can sign releasing me from any responsibility?

Attorney Answers 3

Posted

I assume you mean taxes resulting from any deficiency caused by the short sale and the resulting 1099-C forms that are sent to the IRS by the lender(s). If you are truly not on any of the notes secured by the property then it is not your debt. I assume you will not be filing a tax return jointly with your estranged spouse. Your spouse may be entitled to one of the IRS' several exceptions to owing taxes on the forgiven amounts as well. See IRS publication 4681
http://www.irs.gov/publications/p4681/ch01.html

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Asker

Posted

Thank you for your quick response! So even though we bought the house while we were married, as long as I am not on the mortgage or any other notes held by the lender, I am not responsible for any repayment, taxes, or fees that might arise from a short sale?

Posted

Why are you asking on here and not discussing this with your divorce lawyer? You may not be liable to the third part lender but you are still liable for marital debt. The home I am presuming is marital so you are on the hook for debt associated with it and deficiencies. It is not just so simple as signing a paper. The divorce court has jurisdiction over you, your marital home, and the debt, and the court calls the shots and not you sir.

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7 comments

Asker

Posted

I'm asking here because normally people are polite and prompt with their responses. I appreciate your input ma'am. I have also contacted my lawyer but have yet to here from them.

Lee Alan Thompson

Lee Alan Thompson

Posted

Keep trying to contact your attorney. Since the divorce isn't finished, there are ramifications that you should be able to handle easily.

Peggy M. Raddatz

Peggy M. Raddatz

Posted

We are volunteer lawyers who also have regular practices but find time to lend a hand to help others, We have no information about your case though so you have to speak to your lawyer.

Peggy M. Raddatz

Peggy M. Raddatz

Posted

There was nothing impolite about my response at all.

Lee Alan Thompson

Lee Alan Thompson

Posted

I know on both counts

Peggy M. Raddatz

Peggy M. Raddatz

Posted

Thanks Lee!

Lee Alan Thompson

Lee Alan Thompson

Posted

You're welcome Peggy

Posted

You could be. A short sale has to be handled carefully. Instead of getting tagged why not spend a little money on an attorney.

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Lee Alan Thompson

Lee Alan Thompson

Posted

Saw one of your other comments and although I responded there, keep trying to call your attorney

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