I was involved in a car accident and a Judgement was filed against me for property damage.My question is is it

Question

possible for the insurance company to seize a fereral tax return check made out to me and my wife. My wife was not involved in the accident in any way. She was not listed on the registration or the auto insurance policy.

Answer 1

I don't think so.  I think they can only take from your wages (assuming they file a wage garnishment).  I think tax refunds can only be garnished for back taxes and student loans.

Answer 2

If they somehow find out about the money, they could ask the court to seize one half of it, but they probably wouldn't bother unless it is substantial enough to make a difference.  

From a practical point, the judgement will be hanging over your head for the rest of your life if you don't satisfy it.  Why not volunteer the tax return money to pay part or all of the judgement off?

Answer 3

Possibly- Your wife can file an Innocent Spouse claim on her taxes so she would receive her share of your refund.

www.irs.gov

Answer 4

The insurance company will check you every year or so to see if you've accumulated any assets. If they see you own a home, a vehicle, or anything else that can satisfy(or partially satisfy) their judgement, they will go to court to take it. Chances are though......you'll have your tax return money spent long before they know about it..