What type of relief allows for a separation of liability for tax owed?

The correct answer is the type of relief known as "Separation of Liability." This relief is specifically designed for individuals who are married taxpayers that file jointly but later wish to separate the tax liabilities associated with their joint return.

In this situation, each spouse can be held individually liable for the tax owed on income that is attributed to themselves, as opposed to the entire amount of tax liability being attributed equally to both. This can be particularly beneficial if one spouse has income or deductions that the other spouse did not benefit from, or in cases where one spouse may have acted fraudulently or failed to report certain income while the other spouse was unaware.

While other forms of relief exist, such as Innocent Spouse Relief and Equitable Relief, they revolve around different criteria and emotional or situational contexts rather than strictly separating liabilities for tax owed. Innocent Spouse Relief, for example, is available to spouses who can prove they had no knowledge of the underreported tax, while Equitable Relief considers the fairness of holding someone liable for joint tax issues. Thus, Separation of Liability is the one that specifically pertains to dividing tax responsibilities between spouses based on individual circumstances related to the joint return.