@vrzuker wrote:
Common law state. So it adds to my income. He had a failed business and no. Other income.
I made over 75,000 so his cash out became my income.
A state with common law marriage is not necessarily the same as a community property state. Make sure you are in a community property state before you get in too deep.
Even in a community property state, this might not be "community income." It will depend on the laws of your state. A 401(k) might not be community income because of the type of account it is, or it might not be community income if the "community" ends on separation instead of divorce.
You need professional guidance. Ultimately, if this is deemed to be community income and you owe taxes and penalties, that financial problem should be included with all your other financial concerns as part of your divorce settlement discussions. If this has to go before a judge, I think you will find most family court judges do not look favorably on spouses who take actions to financially penalize their partners.
Here is the IRS publication on community property.
https://www.irs.gov/publications/p555
Good luck.
