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My fiance pays $1,700 a month to the IRS for not paying taxes. He also still has student debt. We are both 57 years old. Am I responsible for his debt if we get married?


Dear Quentin,

My fiancé and I met at the age of 42 after our divorce. We have (now grown up) children from previous marriages, but no children together. We keep our finances separate. Neither of us had any savings when we met. We have been together for 15 years.

During these 14 years, my fiance has worked multiple jobs and has always had payroll tax withheld, but has chosen not to file an annual income tax return. He will always take care of it later. He did not realize the expensive punishments for his actions.

Last year, he paid income tax and recently applied Chapter 13 Banksptcy. With bankruptcy, he’s now joined a 5-year payment plan to pay state and federal income taxes (primarily penalties) and other debts including student loans.

‘Last year he filed income taxes and recently filed for Chapter 13 bankruptcy.’

He must pay $1,700 per month for 5 years to the IRS. We are both 57 years old now. He is a retired veteran. I think he can start withdrawing his pension at 62. So at 62 his money problems will be over! I love this man, and want to marry him.

He said we could get married any time I wanted. If we get married now, will I be responsible for paying off his Chapter 13 debt, which is largely comprised of IRS debt and student loans? I’m worried about marrying him and having to pay his debt if he dies before it’s paid off.

I’m also worried that we’re getting old and we’ve been spending all our time together and he might die before we get married, and I won’t be able to claim his pension. I became a registered nurse 5 years ago and hopefully 10 more years to work. I’m trying to actively save for retirement. I know it’s late.

I bought the house we live in two years ago and I have $100,000 in my retirement account.

I’m trying to figure out the money wise thing for me to do. Thank you for your help.

fiancee

Dear fiancee,

Let’s settle the loans first, and the marriage second.

Federal student loans made before you were married are the sole responsibility of the recipient even if they are married; If you get married and your husband dies, that debt dies with him. Whatever you decide, you should keep all your loan obligations separate and not file a joint tax return.

Given that your partner took on this debt before you got married, this IRS debt belongs to him – and to him alone. For couples, spouses can apply Injury status of spouse if their refund is blocked by the IRS due to their spouse’s tax liability.

To receive your spouse’s Social Security benefits, you need to have been married for at least one year. If you have children together, which I know you don’t, then that one-year rule doesn’t apply. (The divorced spouse must have been married for 10 years to receive the ex-spouse’s allowance.)

I advise you to be cautious about your belief that all his money worries will be over when he has finished paying the monthly penalty to the IRS. Before you get married, you should sit down with a financial advisor and review all of your assets and liabilities together, including whether it’s worth marrying for his benefits if he doesn’t. Should he die before you or not?

Whatever put him in financial straits in the first place – burying his head in the sand instead of paying his annual taxes and/or failing to pay off his student loans – won’t just go away. because you both have a ring on you. finger. It is possible that his pension is not large enough to justify getting married.

A member of the Moneyist Facebook Group put it more bluntly: “I cannot understand how his pension was worth the risk she took in marrying him. He has proven that his financial habits are not good. Why risk that he would do something equally stupid when they were legally bound?

Focus on making the next 10+ years worth by paying off your mortgage, while also accumulating your savings and Social Security. Those born after 1960 are not eligible to participate full Social Security benefits until age 67although retirees are still eligible for a reduced benefit starting at age 62.

How much student debt does he have left? It looks like your name is the only name on your home deed. Will he contribute to your living expenses? If you’re married, I don’t recommend mixing up your finances and asking you to just name your home. Maintain your financial independence, and do not rely on him.

FriendFriend You can email The Moneyist for any financial and ethical questions regarding the coronavirus at [email protected] and follow Quentin Fottrell on Twitter.

Payment procedures Moneyist’s personal Facebook group, where we seek answers to life’s toughest money problems. Readers write to me with all kinds of dilemmas. Post your question, tell me what you’d like to know more about, or consider the latest Moneyist columns.

The Moneyist regrets that he was unable to answer each question.

More from Quentin Fottrell:

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