Taxes

[Enough]

I am currently in the planning and documenting process. I work full time and make around 120k. We have 4 kids. NJ works part time, around 1 day a week and more during certain times. She brought in 6100 last year. She didn't pay any taxes on hers. Hence, when I go to file taxes I have to pay her taxes. I confronted her and asked her "do you want to pay your taxes or do you want me to?". That went over real well.

My question is, would it be better if I stopped filing joint returns and started filing seperate? If we enter a divorce 2 years down the road, what would be better in that situation? My bigger plan is to get her back to work full time, instead of watching TV for 8 hours a day. Is there any benefit for me to stop filing joint returns in this situation?

[Trevor]

Personally I'd focus exclusively on getting her butt back to work. Eat the tax bill for the moment and set aside the proceeds in a war chest (surely she isn't also claiming the refund, if any, right?). Set a deadline and agreement that she'll pay the tax bill if she isn't FT employed by a certain date. Unless the kids are infants, there is no reason she can't be out working to contribute financially to the household economy. Is she degreed or licensed are other important things to consider going forward.

[Enough]

No she has two years of college. Her background is insurance and I think she keeps up with her certifications while working her 1 day a week. The biggest problem is that there are no jobs in our area. We live in the country. If she went back full time in that area she might make 24k if lucky. I am considering moving closer to the burbs so she could get a better paying job (32k+) but have the kids to think about (kids 8, 11, 12, 16) changing schools and such.

[Trevor]

No insurance jobs isn't the same as no jobs. Get her working, even if it's in an unrelated field. You make the money, so I might assume you handle the family budget. Tighten things up a bit so she'll feel the need to work for her own spending money, since the cash flow will be drying up for her. You have to "create demand" so to speak.

[Groundhogday]

I am currently in the planning and documenting process. I work full time and make around 120k. We have 4 kids. NJ works part time, around 1 day a week and more during certain times. She brought in 6100 last year. She didn't pay any taxes on hers. Hence, when I go to file taxes I have to pay her taxes. I confronted her and asked her "do you want to pay your taxes or do you want me to?". That went over real well.

My question is, would it be better if I stopped filing joint returns and started filing seperate? If we enter a divorce 2 years down the road, what would be better in that situation? My bigger plan is to get her back to work full time, instead of watching TV for 8 hours a day. Is there any benefit for me to stop filing joint returns in this situation?

You probably save far more by filing joint than you lose by taking care of her taxes. "Married filing separately" is the worst of all worlds from an income tax perspective.

Like others have said, the big issue is getting her to work. I had the same problem with my wife. After many years she finally started working again, part time. Now that we are going through the divorce process she is trying to argue that she can't work full time (reasons change every month) but luckily she has enough of an employment track record that her income can be imputed. Few judges will let a woman be willingly underemployed these days without imputing income.