RoxanneAre you expected to pay a debt as the surviving spouse? That’s a question many newly single parents have when their partner passes. To see what you could be responsible for, we’ll take a closer look at medical bills, mortgage debt, and credit card debt for widows.
How Community Property States Affect Debt
If you live in any of the following states, you may want to consult an attorney for detailed debt advice concerning your situation:
- Alaska
- Arizona
- California
- Idaho
- Louisiana
- Nevada
- New Mexico
- Texas
- Washington
- Wisconsin
In these community property states, a husband and wife bear equal responsibility for debts acquired during the marriage. In other words, if your deceased spouse acquired debt while you two were married, you may have to pay it.
Medical Debt
Do you remember signing a document when your spouse was admitted to the hospital? If it said you would be responsible for payments on any bills related to that stay, you might have to pay.
As stated, living in a community property state could make you liable for your spouse’s medical bills as well.
A doctrine of necessities exists in some states. It makes the spouse responsible for certain expenses incurred by their partner during the marriage that are deemed as necessary. Medical bills often fall under this category.
Are you in the clear if you don’t live in a community property state or your state doesn’t have a doctrine of necessities? Not necessarily, since a creditor may still request payment from the deceased spouse’s estate.
Since there is so much gray area associated with medical bills and they can be extremely costly, it’s best to consult an attorney for expert advice.
Mortgage Debt
An unpaid mortgage usually falls on the surviving spouse’s lap. If you want to keep the home so you can continue living in it, you’ll need to come up with timely payments. Doing so will avoid foreclosure and sale of the house via a sheriff’s auction.
You could use your spouse’s life insurance policy to satisfy the mortgage debt, or rely on a loan from someone else to stay afloat.
You could also sell the home as a last resort. In this scenario, you would need to find a new place to live, which could become costly due to moving expenses.
Credit Card Debt
If you are listed as a co-signer on the credit card in question, you will be responsible for the debt, even if you have never personally used the card.
Ignoring the debt will result in action from collection agencies, plus a negative hit to your credit score. To avoid these issues, you may want to speak to a nonprofit credit counseling agency for advice on managing the debt.
If you are listed as an authorized user on the account but are not a co-signer, you will not be responsible. Your deceased partner’s estate will be liable, however. If there is any money left once the estate is settled, it will go towards paying the credit card debt.
