Death of a Spouse & Debt

Dealing with the death of a spouse is hard enough without having to worry about financial matters, but unfortunately, dealing with any debt your spouse left behind is crucial to avoid trouble down the line. Managing your deceased spouse's debt can get complicated, and where you live has a major impact on the process. Help is available if untangling the debts becomes too complex for you to handle alone.

Single Accounts vs. Joint Accounts

The biggest factor in dealing with your deceased spouse's debts is whether the accounts left behind were single accounts or joint accounts. If an account was solely in your spouse's name, then creditors usually cannot come after you for the debt. However, the creditors can appeal for payment from your spouse's estate. If there is not enough money to cover the debt, then they have to write off the account.

Joint accounts, or accounts on which you are a co-signer, are different. The total debt transfers to you, and you are now solely responsible for paying off the outstanding amount.

Community Property States

In community property states, the rules regarding single accounts are different. In some instances, your spouse's debt, even if the account is in his name alone, is community property and transfers to you upon his death. Laws vary from state to state on this issue, and the type of debt also impacts whether the debt is transferred to you. A lawyer, consumer credit counselor or state attorney general's office can offer advice about the law where you live.

Getting Help

When you are trying to navigate financial issues after the death of your spouse, the first thing to do is to make a list of all of the debts you shared and the debts that your spouse carried alone. If you are dealing with a significant number of accounts or just aren't sure where to begin, you should contact a consumer debt counseling service or lawyer for help. Your state bar association can recommend an attorney who specializes in estate and probate law.

Contacting Creditors

After your spouse's death, contact creditors as soon as possible to inform them. According to the 2009 Credit Card Act, creditors have to stop adding up fees and interest while the estate is being untangled. Depending on the terms of your credit agreements, accounts may also be closed or written off. Creditors may require official copies of the death certificate.