Divorce and the Innocent Spouse

I have always loved the term “innocent spouse.” Its usual context in a divorce case is tax delinquency. Married tax payers who file a joint return with their spouse are generally liable for the taxes of their spouse. However, there are exceptions to this rule. The following are the general requirements:

You must have filed a joint return which has an understatement of tax;

The understatement of tax must be due to erroneous items of your spouse;

You must establish that at the time you signed the joint return, you did not know, and had no reason to know, that there was an understatement of tax;
Taking into account all of the facts and circumstances, it would be unfair to hold you liable for the understatement of tax; and

The IRS has recently made changes to the requirement that you must request relief within 2 years after the date on which the IRS first began collection activity against you. See AP story in July 26, 2011 AZ Star http://tiny.cc/cdm726
When mediating we generally have language that spells out the parties tax liabilities but the IRS does not recognize this and will go after both parties. Hold harmless and indemnification agreement helps but still requires action to collect. Having “innocent spouse” status helps a lot.
As always, you can post any comment about this blog or Divorce Mediation, or just Mediation by following the directions at the right in the green column or at the bottom of this website. Learn more about mediation at http://www.center-divorce-mediation.com/ WM(225) 7/27/11

Privatization of Divorce

With all the controversy over government taxes, expenditures and regulation, the possible solution of privatizing certain government functions arises. This is not a new idea. There was even a 1988 Presidential Commission on Privatization – Toward More Effective Government. See report at http://pdf.usaid.gov/pdf_docs/PNABB472.pdf. The commission’s report did not deal with the judicial system but my research did find Privatization of Judicial Services an article by Doris Marie Provine and Carroll Seron in the Journal of Public Administration Research and Theory: J-PART
Vol. 1, No. 3 (Jul., 1991), pp. 319-336. There are many more articles. What I have thought about recently is whether it is possible and desirable to privatize that portion of the judicial system that is concerned with divorce. This was prompted by watching a recent story on television discussing the layoff of court personnel in the California Judicial system and the expected resulting back logs. It might take years to hear a divorce case. Privatization could reduce some of the cost of the judicial system and speed up the process. Ironically, we actually privatize marriage. A couple obtains a license and the a private party can marry them. The private divorce system might look like this. A couple could get a license to divorce. They would resolve their case with attorneys or mediators and then submit the settlement to a person licensed to grant a divorce. The person does not have to be a lawyer in a therapist may be an excellent person to be licensed to grant divorces. Contested cases or post judgment issues could also be heard by a person licensed to grant a divorce. The couple would pay the person licensed to grant a divorce. Once the divorce was granted, the terms would be filed with the license. As always, you can post any comment about this blog or Divorce Mediation, or just Mediation by following the directions at the right in the green column or at the bottom of this website. Learn more about mediation at http://www.center-divorce-mediation.com/ WM(224) 6/22/11

Divorce, Mediation and the Earth's Children

I have been listening in my car on CD’s to The Land of the Painted Caves (Earth Children #6) by Jean Auel. All 29 CD’s. Since the CD’s were on reserve I could not renew them and had to take them out a few times. I thought I had read all the others in the series but it turns out that I did not read yet The Shelters of Stone (Earth's Children #5), and The Plains of Passage (Earth's Children #4). I did read The Mammoth Hunters (Earth's Children #3), The Valley of Horses (Earth's Children #2), and The Clan of the Cave Bear (Earth's Children #1). The series started in 1984. I have enjoyed the series. The current books seems to be anthropology text. Auel spends a lot of time talking about these ice age people. I of course was fascinated by her descriptions of marriage and divorce on disk 22, track 12. I also was surprised that she mentioned mediation of a dispute on disk 29, track4. It seems that mediation is older than I thought! As always, you can post any comment about this blog or Divorce Mediation, or just Mediation by following the directions at the right in the green column or at the bottom of this website. Learn more about mediation at http://www.center-divorce-mediation.com/ WM(223) 7/16/11