This article was written by divorce attorney Lisa Robinson as part of her series on celebrity divorce and separation issues.
Even if you are not a Real Housewives of New Jersey fan, it is likely that you have heard of Teresa Giudice. If you’re not familiar with her work, Teresa was the angry housewife who flipped a restaurant table – the table flip heard and seen around the world in 2009 during a filmed dinner. She is one of the founding members of the show and Season 1 cast. She has starred as the center figure in this reality show for years, but recently Teresa’s tax debt issues have made it clear that it’s not just her own actions that have gotten her in hot water.
Teresa Giudice’s Tax Debt: Where Did It Come From?
Drama has followed Giudice into her real life for years. Viewers have watched Teresa’s family grow to 4 daughters, and fans watched as she went to prison for 11 months due to federal charges associated with her former husband of 20 years, Joe Giudice. Fans have also watched Teresa buy thousands of dollars’ worth of furniture with cash and have watched her spend money in the most “over the top” ways on presents, clothes and other items. This very public display of wealth may have been a hit with fans, but it has ultimately done her a disservice in the eyes of the law.
Joe and Teresa were charged with various fraud-related crimes, including: mail fraud, wire fraud, bank fraud, and making false statements in loan applications and bankruptcy filings. This investigation also revealed that Joe had failed to file income tax returns for 5 years. He was using family members’ identities and had never legally obtained US citizenship. As a result of these legal issues, Teresa was forced to pay over $480,000 in fines and fees in addition to the prison time she served. Despite it all, she worked hard and got those fines paid.
Giudice may need the same hard work and money to pay newly incurred fines and fees. In early 2025, it has been revealed that she owes the state of New Jersey $303,000. While a hefty penalty, it isn’t anything she hasn’t faced before. What makes matters much worse this time is not just Teresa’s own tax debt, but that of her second husband, Luis Ruelas: he currently owes a whopping $2.6 million to the Garden State. Much of this is owed to a $1 million loan Luis took out and has since defaulted on.
Did Teresa Know About Her Husband’s Debt?
In our divorce work, we find that there are times when one spouse is totally in the dark about tax issues, especially federal income tax. That “innocent” spouse may have had proper withholdings from his or her paycheck, but the other spouse did not. If the couple filed joint tax returns, each spouse can be liable for any unpaid taxes.
The “innocent” spouse may find that part or even all of their paycheck can be garnished by the federal or state government as part of a repayment plan. This scenario tends to occur when one of the parties is self-employed and/or paid via cash (because everyone who is paid in cash, reports all that cash, right?) Again, realize one spouse can be forced to pay outstanding taxes – even if that spouse has had proper withholdings taken.
Is this the case for Teresa Giudice’s tax debt with her husband Luis? It is not clear, as she has stayed silent on the current headlines. She did claim in a 2022 interview with Bravo executive Andy Cohen that she “knew nothing” in regards to what her first husband Joe was doing and that she had signed documents under false pretenses. In a best case scenario, Giudice has found herself in the same nightmare situation as her first marriage.
Overcoming the Debt
Many fans were happy for Teresa that she rebounded strongly after her prison stay and divorce. She continued to be the star of the Real Housewives of New Jersey. Giudice has also since published several cookbooks and personal stories, and she has starred in other reality based shows. She and her second husband were even able to purchase their home in January 2021 with no loan. The price tag on that 7 bedroom, 10 bathroom house was $3,350,000 – nothing to scoff at. However, despite all of the progress they had made, about a year after that purchase, Luis had to take out that $1 million loan. Perhaps the couple’s finances were not as stable as they had thought.
Now what? If Teresa Giudice’s tax debt can’t be settled and this outstanding loan/mortgage can’t be satisfied and paid, she and her husband may be looking at foreclosure in addition to needing to pay the state of New Jersey the total owed of almost $3 million between them.
So, be cautious about filing a joint tax return. With the joint benefits also comes joint liability. Monitor loan applications that you may be requested to sign. Make sure the data and numbers are correct. While Teresa might be known as someone not to mess with, she has also become an example of why one shouldn’t blindly sign financial documents without close inspection and the consequences of those actions. Even when the person handing you those documents is someone you thought you could trust.
What This Might Mean for Your Marriage
It is also important if a couple ends their marriage in divorce that settlement negotiations include not just division of assets, but also division of debts. Due to this, even if Teresa were to walk away from Luis, she would still be on the hook for the debt. This is something many divorcees discover to their dismay when splitting, especially when due to financial hardship on their spouse’s part.
For your own safety and sanity, always be aware of what is going on financially in your marriage. Share access to all accounts and read every detail before signing a document that has anything to do with finances. If you find yourself on the hook for your spouse’s debt, while you should consult with a Teresa has demonstrated that she is a hard worker and can pay tax liabilities – looks like she is going to need to do that again.
If you are encountering your own tax issues concerning a spouse, contact us or call us at 919-787-6668. Our attorneys and staff can guide you on how to protect yourself and whether or not you are on the hook for any tax debt payments.
