If your spouse dies, are you responsible for their debt?

Are you responsible for your spouse’s debt?

If your spouse dies, you are usually not responsible for their debt, just as children are typically not liable for a deceased parent’s debt. This includes several forms of debt, including credit card debt and student loans.

Instead, when someone dies, their debts are typically taken from their estate. The executor of the estate is the party responsible for resolving those debts and distributing the remainder of the deceased’s assets. If the estate cannot cover the debt, the debt generally goes unpaid. However, there are some exceptions.

When you are responsible for your spouse’s debts

You may be responsible for your spouse’s debt in some instances. Depending on where you live, you may also be impacted by community property laws.

• You are a co-signer: If you co-signed a loan, such as an auto loan, you will likely be held responsible for the ensuing debt.
• You are a joint account holder: If you are a joint account holder on any credit card accounts, you will likely be responsible for any debt accrued, even if you did not make the purchases. However, if you are only an authorized user, you are not responsible for your spouse’s debt.
• You are the executor: If you are your spouse’s estate executor, some states may hold you liable for some debts as the deceased’s spouse.
• Your state has special laws: Your state may have special stipulations requiring you to pay specific types of debt, such as medical expenses. These are called necessaries statutes and are valid in some states.

Impact of community property laws

If you live in a community property state, you will likely be held responsible for your spouse’s debts unless you have a prenuptial or postnuptial agreement that states otherwise.

All property and assets acquired during the marriage are considered joint property in a community property state. Whether you are getting a divorce or your spouse dies, you will be held jointly responsible for any debts you or your spouse accrued during the marriage. This applies even if you were unaware of the debt. However, any debts that were incurred separately before the marriage are not usually your responsibility.

Nine states — Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin — and Puerto Rico have community property laws; Alaska, South Dakota and Tennessee hold community property as optional. If you live in one of these states, you are likely responsible for your spouse’s debts unless a legal agreement is in place or your spouse filed for bankruptcy before death.

It is best to talk to an attorney to ensure you act in accordance with state laws. Free legal help may also be available to advise on your spouse’s estate.

What creditors can do

As the spouse, debt collectors may contact you in an effort to resolve the debt. However, the Fair Debt Collection Practices Act (FDCPA) provides legal protections for spouses and family members, limiting what debt collectors can and cannot do.

Per the FDCPA, creditors can only discuss the deceased’s debts with their spouse, parent(s) or legal guardian if the deceased was a minor. They can also discuss debts with the executor or administrator of the estate, as well as the attorney for the case. A debt collector is prohibited from discussing those debts with any other party.

If you are responsible for the debt, the creditor must give you specific information within five days of first contact. This includes:

• Debt collector’s contact information
• Creditor’s name
• Total balance, outlining interest, fees, payments and credits, as applicable
• Your debt collection rights
• Next steps if you want to contest the debt

What debt collectors cannot do

If you are the executor of the estate, debt collectors may contact you, but they can’t lead you to believe that you are responsible for your spouse’s debt.

If you are not a joint account owner, co-signer or subject to state laws, you can tell the debt collector that you are not obligated to resolve the debt. It is recommended that you send a copy of your spouse’s death certificate via certified mail, including a written request that they cease contact with you.

Even if the debt collector is permitted to contact you, there are still specific rules they must follow. Debt collectors cannot contact you before 8 a.m. and after 9 p.m. unless granted your permission. They cannot email or text you if you request they stop, and they also cannot contact you at work if you notify them that you are unable to accept calls while on the clock.

If you feel a debt collector is acting unfairly, you can file a report with the Federal Trade Commission, the Consumer Financial Protection Bureau or your state attorney general.

Managing debts after a spouse's death

When managing debts after a spouse’s death, be sure to notify their lenders that they are now deceased. This will be updated in their credit report and flagged by credit bureaus to prevent fraudulent credit activity in your spouse’s name. If you find that you are responsible for your spouse’s debts, start by organizing all the outstanding debts into a list. Note the payment amounts and dates so you can be sure to make timely payments. If there are several accounts, consider a debt consolidation loan, which combines all your debts into one monthly payment, or another debt management plan.

An attorney can keep you on track with state requirements. An experienced financial advisor or credit counseling service can work with you to get your finances on track.