Us Tax Thai Marriage & Divorce, Financial Risk

[Tiger7Moth]

Last year I married a Thai woman (registered at Ampuh). According to US Tax Publication 17, you are considered married for the entire year if you are married on the last day of the year. There is a significant tax advantage to me if I file a "Married Filing Jointly return" as compared to filing as Single.

My wife and I will be divorcing in a few weeks. There will be an Adendum to the Thai divorce document stating that I will provide a lump sum payment to her and there will be no further financial obligations, that all assets and income for either parties will be separate and no further claim by either party can be made against the other party.

While there is a compelling reason to file as "Married Filing Jointly", I am slightly concerned that even with the Addendum to the Thai divorce document, I might be at risk for some future finanacial obligation (such as, part of my retirement income).

Anyone who has insight or experience in this regard, I would appreciate input/guidance.

Thanks

[bbigman21]

Yes there are chances she could come after you pension. Were is your life living? What does she do for a living? I guess I need more info before I can put my two cents in.

[PeaceBlondie]

I always have advised people who are about to divorce, that they should file separately (Married Filing Separately). The few advantages to filing jointly are overpowered by pitfalls that go along with joint filing, such as joint and several liability.

Don't just read Publication 17 when you're married to an alien. Read the pertinent special Publications relating to foreign spouses, living overseas, foreign earned income, etc.

[kkf123]

i think you have to be married to a us citizen or us resident to file married.

if your wife isnt paying taxes to us government, or living in america, i dont believe you can get any of the tax breaks.

speak to a cpa.

[lanny]

I don't know what Pub 17 says; when I need to do research, I go to the code and regs, etc. But there are restrictions on filing a joint return with a non-resident alien spouse. You do not have to be married to a US citizen or resident but, if not, there can be complications.

If you file a joint return with a Thai spouse who is not also a US citizen or green card holder, you are making an election to treat her as if she were such. So, she must include all of her income, from whatever source, in the joint return. Yet, you are married, so you cannot file as Single.

I always advise my clients of the potential pitfalls of joint returns. Everyone's situation is different and the best tax strategy depends on the individual facts. You don't provide enough information about your self or your wife to tell what your best course might be.

Consider seeking professional help, at least for the current year.

Edited March 26, 2006 by lanny