How Joint Tax Returns Are Treated In Florida When Only One Spouse Files For Bankruptcy

Can One Spouse File For Bankruptcy If Both File A Joint Tax Return?

It’s worth exploring how bankruptcy affects joint tax returns in Florida if you’re in a situation where bankruptcy could impact your tax return.

In Florida, one spouse can indeed file for bankruptcy even if both filed a joint tax return. In most cases, trustees do not pursue the entire refund if only one spouse is filing. However, they may consider whether the refund is shared property, and at most, they might claim 50% of the refund.

Of course, every case is different, and various factors can affect how a trustee handles your particular refund. Regardless, if you’re considering filing individually, a bankruptcy attorney can help assess the risks and determine the best approach to protect your assets.

How Does A Joint Tax Return Affect The Non-Filing Spouse’s Assets?

Joint returns do not affect non-filing spouses’ assets in Florida.

Will My Spouse’s Tax Refund Be Impacted By My Florida Bankruptcy Filing?

If your spouse files a separate tax return, their refund is not affected by your bankruptcy. However, if you filed a joint tax return, the trustee may review the refund to determine whether any portion belongs to the bankruptcy estate.

In many cases, they might only claim your share of the refund rather than the full amount. Each case is unique, and whether the trustee pursues any portion of your refund depends on any exemptions you may be eligible for and your overall financial situation.

Will My Bankruptcy Filing Affect My Spouse’s Future Tax Filings?

Your bankruptcy will not affect your spouse’s future tax filings.

Can A Joint Tax Refund Cause Unexpected Challenges In A Bankruptcy Case? How Can You Resolve Them?

We’ve handled many cases where a joint tax refund became an issue in bankruptcy, especially when the trustee determined that both spouses had shared debt. In these sorts of cases, the trustee may attempt to claim the refund, even if only one spouse is filing for bankruptcy.

How we go about protecting your refund depends, but we’ve generally found leveraging tenancy by the entirety, a legal exemption available to married couples, to be a solid option. Despite this, this exemption only applies if a couple:

• Is still living together. Separation will nullify your ability to take advantage of this exemption.
• Does not share unsecured debt, such as joint credit card balances.

If the exemption does not apply, the trustee may seek a portion of the refund. However, because part of the refund belongs to the non-filing spouse, trustees may hesitate to pursue it aggressively. Proper planning before filing is especially important here since it is a fairly nuanced situation with such clear benefits.

Still Have Questions? Ready To Get Started?

For more information on How bankruptcy affects joint tax returns in Florida, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (407) 300-1082 today.