When Death Do Us Part Meets Debt Do Us Start: A Guide to Not Inheriting Your Spouse's Financial Baggage
Here's a cheery question someone recently posed to one of MarketWatch's columnist: "Hey, if my husband kicks the bucket, am I stuck with his mountain of student loans and credit card debt?" (I'm paraphrasing, but the existential dread is accurate). The writer, who smugly signs off as "debt-free wife" (we love the flex), is wondering if her husband's Parent PLUS loan and five-figure credit card adventure will become her problem if he takes the ultimate early retirement.
The Moneyist's Take: It's Complicated (Because Of Course It Is)
Our friendly neighborhood financial advice columnist, Quentin Fottrell, basically said, "Well, you should've thought about this before putting a ring on it," but in nicer terms. Here's the breakdown of his wisdom:
The Good News (Sort Of)
Parent PLUS loans typically die with the borrower (pun intended)
Credit card debt is usually between your spouse and their terrible spending habits
The Federal Trade Commission won't make you pay for your deceased spouse's retail therapy sessions
The Plot Twist
Living in one of these states? Grab some popcorn:
Arizona
California
Idaho
Louisiana
Nevada
New Mexico
Texas
Washington
Wisconsin
Congratulations! You're in a community property state, where "what's yours is mine" isn't just a cute saying – it's the law.
Beyond “The Moneyist”: What They Don't Tell You At The Altar
The "Before You Say I Do" Checklist:
1. Get Financially Naked
Share credit reports like you share Netflix passwords
Discuss debt like you discuss your ex's red flags
Consider a prenup (because romance isn't dead, it's just fiscally responsible)
2. Separate But Equal(ish)
Keep separate accounts (like the letter writer smartly did)
Create a joint account for shared expenses
Document everything (trust your spouse, but document like you don't)
3. The Estate Planning Nobody Wants to Talk About
Get life insurance (because dying broke is so last century)
Create a will (make it dramatic if you must)
Set up a trust (your lawyer will thank you)
The Bottom Line: Protect Yourself Before You Wreck Yourself
Marriage may be about love, but divorce and death are about money. Here's what you really need to do:
Talk about finances before marriage (revolutionary, I know)
Keep detailed records of pre-marriage debt
Consider living in a non-community property state (kidding... sort of)
Consult an estate planning attorney (they're like therapists, but for money)
Remember: This isn't legal advice – it's just a snarky summary of what happens when "forever" meets "finance." For actual legal guidance, consult someone who charges $500 an hour… or you can pay ME 500 per hour but don’t expect the same results
Key concepts: inheritance debt responsibility, spouse debt liability, community property states, marriage financial planning, debt after death, estate planning basics, surviving spouse rights
Source: Adapted from MarketWatch's "The Moneyist" column by Quentin Fottrell, "I take pride in being debt-free': My husband owes thousands of dollars in student loans and credit-card debt. Will I be on the hook if he dies?"
Want more cheerful financial advice? Check out our other guides: "Til Debt Do Us Part: A Romance Novel Gone Wrong" and "How to Marry Rich Without Looking Like You're Trying" (spoiler: you're probably trying too hard).
