“The best way to get ahead financially is to be part of a married couple in which both partners have a college degree and a career.”
This was an interesting excerpt an article that first appeared in an article in Bloomberg View. The effect of marriage on financial stability is enormous. Marriages can either be financially advantageous or can lead to financial disaster.
That said, the reporting requirements of FATCA and FBAR have a huge impact on a non-U.S. citizen who is either married to or is considering marriage to an expat U.S. citizen. In a marriage many bank accounts and assets are owned and managed jointly. Imagine the following situation:
A U.S. spouse has signing authority over a bank account with a non-U.S. spouse. Imagine that this bank account holds assets of the non-U.S. spouse. The requirements of FATCA and FBAR require that the U.S. spouse reports the assets of the non-U.S. spouse to the IRS. Of course, the way around this is to never allow the U.S. spouse to have any signing authority, ownership or access to the account.
If you were not a U.S. citizen, would you want to be married to someone who was obligated to report your assets to the IRS? The days of expat U.S. citizens being able to find non-U.S. marriage partners are over!
Consider the following:
“Myself and one other woman on the forum both discussed how divorce had gone through our minds as an option. She is an older woman with a very long term marriage and so am I. However, if we divorced the IRS could not bothering our foreign spouses and children. So who do I divorce? My husband or my country? If I divorce my country will I still be able to visit my father, brother and sister there? These are the kinds of positions they are putting us in. Law abiding, people who never broke the law in their life and who are middle to lower income for the most part and who owed no taxes.”
“Clarissa has been in Canada since 1975, and became a Canadian citizen in 1980. She is deeply frustrated that her husband, a single-nationality Canadian, now has to declare his assets to the IRS because of his wife’s American nationality.
“He is very unhappy about this — now his income is fair game for the IRS,” she said. “Canadian business partners of dual Canadian-US citizens are also affected by the invasive disclosures required by the IRS. For people opening new bank accounts, they now ask if you’re a U.S. citizen or not.”
“Yes, you have to report to the United States even if the money in the account was made by a foreign spouse. If you have checking rights they violate the privacy rights of foreign citizens. No thanks, I just heard about this and I’m renouncing. It’s that “signature authority” I fully object to. It makes me as an American a liability to my Canadian family. Heinous!“