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Sign Here Honey
by: Helga Hayse
Every year, on or around April 15, millions of wives are asked
by their husband to sign a joint income tax return. My husband
used to say "Sign here Honey" at 9:00 pm on April 15 as he raced
into the house with the tax return he'd just picked up from the
accountant.
"The post office is open till midnight, so let's do this right
now," he'd say. Most wives sign and don't give it a second
thought. That's what I used to do. In fact, we're often relieved
that we don't have to be involved when we have so many other
things to do. Besides, isn't taxes our husband's job? The answer
is NO!
"Sign here Honey" may be three little words that can come back
to haunt you if you are ever divorced or widowed. Whether your
husband, an accountant or H.R. Block prepares the return, once
you sign the return, you are attesting to your understanding and
agreement that the information as stated on the return is correct.
My friend Betty earns a six-figure income with a large
corporation. She manages huge budgets and financial commitments
affecting hundreds of employees. But when it involves her
marital finances, Betty reverts to the traditional role of wife.
Her husband Mike manages the finances at home, works with the
accountant to prepare the income tax return and brings it home
just in time to get it mailed before midnight on April 15. When
he says, "Sign here, Honey," Betty signs, relieved that Mike is
taking care of something she doesn't want to think about at home.
During her divorce proceedings a few years ago, Betty was asked
if she saw the tax returns annually. She did. Did she review
them? No, frankly, she trusted her husband. Wasn't she concerned
about what she was signing? No. Three years after their divorce
was final, Betty was wrangling with the IRS. Did she have copies
of the returns that she signed? No, she didn't.
If she had, she might have discovered that her husband was
underreporting their income. Betty protested that she didn't
know about it; her husband prepared the returns and she would
never have signed something she knew to be fraudulent, and she's
very sorry and so on.
For the IRS, it's nothing personal. A couple is a legal and
financial unit. The taxes require the knowledge and signatures
of both partners. Community property law required that Betty
repay the government half of the taxes owed when she was still
married. Her half amounted to nearly $75,000, a huge amount of
money for someone whose lifestyle had been severely compromised
as a result of the divorce.
If you're not interested in your tax return, you should be. It's
an integral part of your marriage and will give you a closer
look at what's really going on financially in your marriage. You
might discover that your husband has more income than you
thought. You might find an IRA or a Keogh plan that you didn't
know about. Perhaps there is a business partnership you need to
know about if your husband dies.
Tax time is a good opportunity to learn about investments which
belong to both of you, but which you typically don't pay
attention to because your husband is the one who interacts with
the broker.
How do you learn more? ASK!
Start with your husband. Your husband isn't necessarily trying
to hide things from you by doing the taxes. He does it because
you may want or expect him to. If he is preparing the return,
your husband might be delighted that you're interested.
If an accountant is doing your joint return, attend the meeting
with your husband. This is a good place to ask questions because
the accountant can explain things to you that even your husband
often doesn't understand.
The point is, you have to ask, especially if you've made it a
point not to be involved over the years. "Sign here Honey"
takes on a totally different meaning when you're participating as
an informed partner.
(c) 2009, Helga Hayse. Reprints welcomed so long as the article
and byline are kept intact and all links are made live.
Helga Hayse is author of "Don't Worry about a Thing, Dear" - Why
Women Need Financial intimacy. She teaches women about
participating and understanding their marital finances. She
speaks to financial planners and estate planners about how to
encourage crucial conversation between generations. For more
information visit http://www.financialintimacy.com
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