In re Cohen

MEMORANDUM DECISION ON “ISSUE 1” RELATED TO WHETHER IRS CLAIM IS A COMMUNITY CLAIM

I. INTRODUCTION

Tax debts that arise during marriage are “community claims” in bankruptcy parlance, and they are payable from community property. In this case the debtor’s wife argues that her interest in community property somehow ceased to be liable for those tax debts because, after she separated from the debtor, he entered into a settlement with the Internal Revenue Service (“IRS”). She cites no authority that is on point, and this court rejects her arguments. This court also holds that certain entities in which the bankruptcy estate holds an interest are entitled to inter-pled funds in litigation to which the IRS is a party, and sustains in part and overrules in part various objections to the claims asserted by the IRS.

II. BACKGROUND

In 1989 the debtor, Mr. Cohen (“Debt- or”), was married to Ms. Fariba Cohen (“Ms.Cohen”). They separated in 2010 (the parties disagree on the precise separation date, but it makes no difference for purposes of this memorandum decision). See Dkt. 60 at 10:10-11; 97; 460 at 5:12. Just before their divorce trial was set to resume, Debtor filed his voluntary…