I’m in my 40s and recently learned my father has been lying about his finances. He owes a lot of money to many people whom he borrowed from over the years, and he has no source of income to pay them back with.
He does own several properties, but they’re not selling given how terrible the housing market is at the moment and, even if they do sell, they won’t be enough to cover what he owes. He’s also older and not very healthy.
My siblings and I are worried about the burden on my mother if something were to happen to him. They’re still married.
To what extent would she be responsible for his debts?
Concerned Son
“It’s not a one-size-fits-all answer, I’m afraid. But nor should your mother roll over if your father dies, and get out her checkbook for every debt collector that comes calling.”
MarketWatch illustration
Dear Concerned,
Financial infidelity, by some accounts, can be as devastating as any other kind of infidelity. It can threaten not only a couple’s marriage, but also their home, peace of mind, financial independence, reputation, credit score and even their ability to retire. It’s devastating to put someone’s future in jeopardy by keeping secrets like this. Nearly one-third of people have said they’ve committed financial infidelity — that is, deliberately keeping secrets about money from their partner — but over half have said they have financial secrets, like a secret bank account.
The Federal Trade Commission and Consumer Financial Protection Bureau say that a surviving spouse is not liable for credit-card debt, student debt or other kinds of debt owed by a partner who dies. The contract is between your father and the credit-card company. However, in a community-property state, your mother may be liable for certain debts, such as medical debt, from jointly held assets. There are nine community-property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
What kind of debt your mother may be on the hook for will depend on whether she lives in one of those community-property states, the nature of the debt and the laws in her particular state. “The debt of a deceased person is paid from their estate, which is simply the sum of all the assets they owned at death,” Experian says. “If [the] spouse had a will, the executor they named in the will uses the estate to pay off creditors. If [the]…
Read More: My father racked up secret debts. Will my mother be responsible if he dies?
