We are not divorced yet, but we have lived apart for more than a year. Does that satisfy the separation-of-liability rule?
I am a Canadian founder and my spouse and I have been living in different homes since last spring. We are still legally married, but the relationship is over and we have separate finances. The IRS issue relates to a prior joint return and about $19,000 of tax that came from my spouse's side business.
I keep seeing references to divorce or legal separation, but I also saw one mention of a 12-month living-apart test. If that second rule is real, it might matter a lot because the divorce paperwork is not finished yet.
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