The question of who gets stuck with the debt when a spouse dies is a common concern that can lead to a great deal of marital stress. There are numerous complicated factors involved in deciding how much debt is your responsibility in the event of a death or divorce. These include when your husband incurred the debt and even which state you live in. Understanding these factors is essential to proper financial and end-of-life planning.
Community Property vs. Common Law
Responsibility for your spouse's debts varies according to whether you and your husband live in a community property or a common law state. In a community property state, such as Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin, debts incurred by one spouse are owed by both, notes the NOLO legal encyclopedia. In common law states, you generally will not owe debts incurred by your spouse alone, unless the debts were for family expenses, such as purchasing the family home.
Premarital Debts
Debts incurred by your spouse before you were married, such as student loans or credit card debts, are usually his responsibility, according to BCS Alliance website. However, a wife can be responsible for credit card debts incurred by her spouse during the marriage, even if she wasn't named on the card or didn't even know about it. Consult an attorney or financial adviser if your spouse has significant credit card debt.
Prenuptial and Postnuptial Agreements
Prenuptial and postnuptial agreements will affect whether you will have to pay for debts incurred by your spouse during the marriage after he is deceased. These types of agreements, whether established before or after your marriage, can protect certain joint assets and keep individual debts with the spouse that incurred them, notes Layers.com. However, both partners need qualified legal representation fair to both parties, or a judge may throw out the entire agreement.
Additional Information
Debts and how marriage affects them can be an extremely complex area of law. In addition, some types of creditors, such as credit card companies, have mastered the art of finding legal loopholes to make sure they receive payment. End-of-life planning and how the death of a spouse affects property are also complicated, and they vary from state to state. Consult an attorney who specializes in debt management and end-of-life planning. This will ensure that you and your spouse are prepared to handle his debt appropriately.
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