How to Deal With Debt After a Spouse’s Death

Losing a spouse is overwhelming, and dealing with debt adds another layer of stress. While your spouse’s debts may not automatically become yours, understanding your options is crucial. This guide will walk you through the steps to determine your responsibility, manage any debts, and help you navigate this challenging time with clarity and confidence.

Is your spouse responsible for debt after your death?

According to the Consumer Financial Protection Bureau, your estate (the assets you leave behind) pays off your debts when you die. If your estate doesn’t have enough funds to cover your debt, the debt is typically forgiven. 

There are exceptions, such as if your spouse is also listed on the debt and you live in a community property state. 

Tip

The nine community property states are Arizona, California, Idaho, Louisiana, New Mexico, Nevada, Texas, Washington, and Wisconsin.

In several specific circumstances, debt becomes the responsibility of the living spouse. Here are five examples.

Are you…	Example	Responsible for the debt?
A cosigner on a spouse’s debt?	You cosigned a car loan, a personal loan, or a student loan.	Yes
A joint owner on a spouse’s debt?	You jointly own a credit card, or you jointly signed for a mortgage.	Yes
An authorized user on a spouse’s debt?	You’re an authorized user on your spouse’s credit cards.	No
Living in a state that requires spouses to pay specific debts?	You live in one of the nine states that abide by community property laws.	Yes, but only for debts incurred while you were married.
The administrator or executor of your spouse’s estate?	If you are the executor of your spouse’s estate, you are responsible for making debt payments from the estate.	You are not personally liable for the debt (unless you are a cosigner on or joint owner of the debt.)

If you’ve recently lost your spouse, we recommend contacting an estate attorney to help clarify whether you’re responsible for their debt. 

Does your state require you to pay a spouse’s debts?

If you live in one of nine community property states, you are responsible for debt accrued during your marriage.

What community property state residents need to know

In the states listed above, the assets and debt you acquire while you’re married belong to both spouses, even if just one person’s name is on a debt or asset. If you live in one of these states and your spouse passes away, get legal advice. An estate attorney can help you confirm your debt obligations and determine the next steps.

If you don’t live in one of the states listed above, you are not responsible for paying for your spouse’s debts unless you are a cosigner on or co-owner of the debt. However, your spouse’s estate assets might be used to satisfy their debt obligations. Consult an estate attorney if you have questions about your debt responsibilities.

How to deal with specific types of debt after a spouse dies 

According to Steve Bucci, author and founder of a consumer credit counseling service, most states do not require a spouse to take responsibility for a spouse’s debt after his or her passing. However, in community property states, creditors have certain recourses in specific situations related to collecting on a deceased person’s debts.

These rules may affect a surviving spouse and the estate assets of a deceased individual when it comes to mortgage loans, credit card debt, student and auto loans, and IRS obligations. The following information provides general guidance on each type of debt to understand better what debt you are responsible for—and what you are not.

Type of debt	Responsible for paying?	What do I need to do?
Credit card debt	If you are an authorized user, no. If you are a joint account holder, yes.	Gather records and your spouse’s death certificate. Contact the credit card company for requirements and next steps.
Mortgage debt	Yes, if you are also on the mortgage loan.	Contact your mortgage company for requirements and next steps. Ask what your options are moving forward.
Student loans	Only if you are a cosigner on private student loans or live in a community property state. Federal loans are forgiven in the case of death. Depending on the lender, some private loans can be discharged upon death.	Submit proof of death for federal loans, and the loans will be discharged. Contact private lenders to see whether they discharge loans in the case of death.
Car loans	Only if you jointly own the car or live in a community property state.	Decide whether you want to refinance the vehicle, sell it, or keep it (if it’s in your name too) and continue making payments.
IRS debt	Based on individual circumstances	Call the IRS to ask about the next steps and to see whether your spouse has any back taxes due.

Here is more information about each type of debt.

Credit card debt after death of spouse

When credit cards are owned jointly, the spouse who is the joint owner assumes the debt upon the spouse’s death. However, you’re not responsible for repaying credit card debt if you are simply an authorized user.

• In community property states, debts incurred during the marriage, including credit card debt, even when owned individually, become the responsibility of the surviving spouse upon the owner’s death.

Next steps

Inform credit card companies of your spouse’s passing. This will prevent the creditor from contacting you about missed payments or balances owed.

Mortgage debt after death of a spouse

Married couples often have mortgage debt held jointly. When this happens and a spouse passes away, the surviving spouse assumes the mortgage debt as their own.

• If a mortgage is only titled, not financed, in both spouses’ names, the remaining balance on a mortgage also becomes yours when your spouse dies. While this is often the largest responsibility from a financial perspective, lenders cannot demand the full balance owed on the mortgage after a spouse’s death.

Next steps

The surviving spouse can assume the mortgage individually, refinance into their own name, or continue to make monthly payments as agreed to keep the mortgage current.

Handling a deceased spouse’s student loans

In most cases, student loan debt is discharged when the borrower passes away. However, a surviving spouse is responsible for repaying the student loan if they were listed as a cosigner on a refinanced or private student loan. 

The Department of Education states that federal student loans are safe from repayment liability in nearly all cases, meaning surviving spouses do not assume the debt.

• Student loan debt may become the surviving spouse’s responsibility if you live in a community property state and the student loan was taken out during the marriage. 

Next steps

Submit proof of death for federal loans, and the loans will be discharged. Contact private lenders to see whether they discharge loans in the case of death.

Auto loans after the death of a spouse

Similar to other debts, auto loans are only assumed by the surviving spouse when the vehicle was financed jointly or you live in a community property state. 

It may be possible to refinance an auto loan after the death of a spouse to ensure payments are affordable. Or the vehicle can be sold to pay off the remaining loan balance if you don’t want to keep the car or you can’t make the payments.

• In a community property state, the vehicle must have been acquired and financed during the course of the marriage for the debt to fall on the shoulders of the surviving spouse.

Next steps

Decide whether you want to refinance, sell, or keep the vehicle. If you keep it, continue making payments, and find out how to title the car in your name only.

IRS debt after the death of a spouse

When your spouse passes, you’ll still need to file their final tax return. If your spouse has any outstanding tax bills, the estate might be responsible for paying them.

• If a deceased spouse owed back taxes incurred during the marriage and the couple lived in a community property state, the surviving spouse must pay the tax debt. If the tax debt was incurred before the marriage, the deceased spouse’s estate might still owe the debt, but it does not become the responsibility of the surviving spouse.

Next steps

Contact the IRS to ask about the next steps and to see whether your spouse has any back taxes due. The IRS offers payment plans, so if you need help with payments, inquire about your options.

Items to check when dealing with debt after a spouse’s death

Here is a list of steps to take with your finances if your spouse passes away.

1. Gather documents: List all accounts, loans, and other financial obligations.
2. Get a death certificate: You’ll need an official one when contacting creditors and managing your spouse’s estate.
3. Contact lenders and creditors: Let each creditor know your spouse passed and ask for the next steps.
4. Review community laws in your state: Some states treat debt incurred during marriage as community property.
5. Seek legal advice: Contact an estate attorney who can help ensure you’re meeting all the obligations in your state.
6. Update beneficiaries: If your spouse was your beneficiary, make sure to update all your accounts and policies to new beneficiaries.
7. Apply for survivor benefits: If you have survivor benefits from a life insurance policy, pension plan, or Social Security, complete the steps to access them.
8. Close accounts: To prevent future charges, ensure that any accounts in your spouse’s name, including bank accounts, apps, and subscriptions, are closed.
9. Protect your spouse’s identity: Contact the credit bureaus to notify them your spouse passed. This can prevent identity theft.

How can married couples financially prepare for a spouse’s death?

Although it’s not pleasant to think about, being proactive about your finances early on can help prevent stress if you or your spouse passes away. One of the most important steps to take ahead of time is to ensure both of your names are on your accounts, including bank accounts, mortgage accounts, and any relevant investment accounts.

Create a detailed estate plan, including a will and trust. If you or your spouse has debt, consult an estate attorney for guidance on debt obligations after death. An attorney can help you understand state guidelines and who is responsible for which debts should something happen.

Resources to help navigate debt after a spouse’s death

Losing a spouse is a profound and life-changing experience, and dealing with financial matters during such a time can feel overwhelming. While managing debt may be the last thing on your mind, these resources are here to offer guidance and support to help you navigate this difficult journey with compassion and clarity.

Credit card debt

Ways to consolidate credit card debt

Mortgage debt

Best mortgage refinance companies

Mortgage refinance calculator

How much house can I afford?

Best reverse mortgage lenders

Student loan debt

Should married couples consolidate student loans? 

Student loan consolidation guide

How to refinance student loans

Best student loan refinance companies

Student loan refinance calculator

Should you marry someone with six figures of student loan debt?

Dealing with student loan debt after death

Auto loan debt

Best auto loan refinance companies

Auto loan refinance calculator

Cash-out auto refinance

IRS debt

List of personal finance companies

How to get out of tax debt

Where to find IRS audit representation