My Husband is Going to 1099 Me. We Are Getting Divorced. – Suki

“Dear Steve,

Hi Steve,

I helped my husband run his business, he paid me each month, and for the first time in our marriage, he said he will 1099 me at the end of the year. I unfortunatly have gotten myself in heavy debt, 32 thousand in only credit cards that are in my name only. Im so scared to let him know.

When i filled out the credit apps, I put down the name of his business as my employment (he is the only sole prioperitor) I am not linked to his business. Now we are going to be going through a divorce soon. I have been making payments, but I wont be able to make a payment for more than 6 months because I am moving to my moms with the kids. I really want to know so bad these questions: Can i bankrupt ch.7 after the divorce, since these are my debts and will he know? will the court still go after his income or assetts? if he doesnt 1099 me, and i show no income on the income tax, will the creditors think its fraud? Please respond, I have been super depressed, anxiety and panicked about this. I hope in time to go counseling over my spending and marriage issues and one day he would remarry me, but I just want to be out of this debt problem. Im in Ca.

Thank you!


Dear Suki,

If the debt is in your name alone and you do a Chapter 7 bankruptcy in your name, there is no reason for any creditor to go after your ex-husband. They would have no right to.

The bigger issue here is the fact that you were employed on a monthly basis and your husband did not withhold or pay taxes on your earnings. This strikes me as very odd. Why would he leave you owing the IRS loads of money at the end of the year?

See also  In the Military, Out of the Country, Divorced and Deep in Debt. - Jamal

As far as being scared about the situation, it is a normal and natural feeling. Completely understandable. Call me old fashioned, but isn’t honesty a better approach here? Those couples that deal with their financial secrets are most often stronger for it. Debt secrets are only explosive and one day they come to light and the deception is not helpful at all to making things better.

Counseling sounds like it would be beneficial. So what was the most common thing you spent the credit on?

Please update me on your progress by

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

Damon Day - Pro Debt Coach

Steve Rhode

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