The loss of a spouse is one of the most stressful events in life. It is hardly the time one is prepared to deal with the avalanche of bills and, in many cases, unpleasant financial surprises. A recent article from Forbes, “Managing Your Partner’s Debt After Loss: What Surviving Spouses Need To Know,” says that surviving spouses aren’t responsible for their deceased spouse’s debt unless they had joint credit cards or if any loans or property were jointly owned.
Any outstanding debts should be paid from the deceased spouse’s estate and not by the surviving spouse. The estate is simply the value of a person’s assets. In most cases, the decedent’s debts must be paid before any assets are distributed.
If the surviving spouse is the only heir, they receive whatever assets are left after debts are paid. They personally do not have to pay those debts. However, the deceased spouse’s debts will diminish the surviving spouse's inheritance.
A worst-case scenario is when the estate doesn’t have enough money to pay for the debts, and the widow is left with nothing. In some states, it is possible to petition the court to reserve a portion of the money, known as the homestead exemption or allowance, to provide some financial support. This is usually done in cases where the spouse would otherwise be destitute.
An estate administration attorney can help determine how to settle the estate and manage debt to protect the surviving spouse. Understanding the different types of debt is needed to know what to do.
Credit card companies are aggressive about debt when someone dies. Collection agencies start calling shortly after the death; and, even if the credit card is not in the surviving spouse’s name, they try to bully the grieving person into paying something. The estate administration attorney is better equipped to inform the credit card company, not the collection agency, of the person’s death, provide a death certificate and settle the debt with the estate. Having an attorney on your side is also helpful when negotiating how much of the debt should be paid.
Medical debt is a real problem for surviving spouses. Federal and state laws about medical debt and agencies focus on helping consumers. Healthcare providers will sometimes work out payment plans and reduce payments. A person struggling with grief may want to ask a family member or their attorney to help with negotiations.
Homes are usually the largest asset, carrying the biggest debt. If the ownership and mortgage are in both people’s names, the mortgage balance is still due. The debt becomes an estate liability if the mortgage is solely in the deceased spouse’s name. The mortgage company can foreclose on the home if the estate can’t pay the debt. In many cases, couples have life insurance to protect them from losing their home. Your state may have laws to protect surviving spouses, which your estate administration attorney will know.
Considering the death of a beloved spouse is not easy. However, the unavoidable fact is that one spouse will die before the other. It would be a great kindness for both spouses to prepare for this eventuality. Having an estate plan created, including a Will for each spouse, sharing information about all debts as well as assets and working with an estate planning attorney to ensure that all the right elements are in place—trusts are funded, life insurance policies are paid, etc.—would allow the surviving spouse to grieve without the added stress of a tangled estate.
Reference: Forbes (Feb. 18, 2025) “Managing Your Partner’s Debt After Loss: What Surviving Spouses Need To Know”
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