do i pay his debts after he dies?

goingcrazy · 04-19-2007, 12:56 PM

my husband has a huge amount of debt , mostly his business. if he should die before i divorce him, will i be responsible for his debts?

Ash · 04-19-2007, 01:03 PM

Is his business incorporated, or is it essentially his personal asset and liability? If it's a one person show and the finances are combined with his personal stuff than I suspect you will be liable. Hopefully, should something like that happen he has insurance that will come into play.

If you try to divorce him before he were to pass away, you may be liable for half the debt anyway if it's all personal.

goingcrazy · 04-19-2007, 01:09 PM

his bs is incorporated but he uses company credit cards to pay for personal stuff also. is that going to be a problem.

Ash · 04-19-2007, 01:13 PM

Unless he keeps his business finances and his personal finances completely isolated it could be tricky. His creditors will come after the money using whatever angles they have, and if they feel his business debts were not being paid because he spent the money on himself personally, and there is a credit card link it's a problem.

If this situation is quite likely (his death ... is he ill??) then I'd suggest you seek the advice of a lawyer. Certainly don't take my word for it.

goingcrazy · 04-19-2007, 01:17 PM

he has had a heart attack and does not take care of himself...drinking,eating and little exercise...he lies to me regularly about porn and other women...i am cosidering divorce because of both situations. if he has a stroke and i have to take care of him for the rest of my life i don't think i can handle that either...i know i should get an attorney on this....thanks

Ash · 04-19-2007, 01:29 PM

The large debt is certainly a concern. It does sound like you'll need a lawyer at some point, might as well at least consult one sooner rather than later.

PocoDiablo · 04-19-2007, 03:00 PM

If he is incorporated, the business is the only liability. If he is avoiding taxes by paying for personal items from the business account, the IRS will come after him. If you are a signer on the business account, or an employee of the company, creditors and the IRS can, and probably will, come after you for fraud. It is very difficult to set up a corporation and maintain the corporate "veil" but it can be done. It all depends on how well the corporation is set up. However, in cases of fraud, the corporation will be found to be void and he (and maybe you) will be personally liable. You have to be very careful.

The only way you will know for sure will be to talk to a lawyer.

goingcrazy · 04-19-2007, 04:27 PM

we have only been married 2 years and i have not signed anything where it relates to him. We do not have joint accounts or even the same bank and we own nothing together. he lives in my house, drives my cars...he does pay the property taxes on the house and some expenses like travel and meals but that's it. i will consult an attorney but what do you think?

Ash · 04-19-2007, 04:33 PM

This is quite a short marriage. You may be in a better position than if you'd been together 20 years. It's a lot easier to show most of how things are were the same as they were 2 years ago. Had you gone in debt while married, bought the house and cars together it would have been worse. But still, a lawyer is the best way to go.

04-19-2007, 12:56 PM	#1
goingcrazy Offline Member Join Date: Apr 2007 Location: ca Gender: Female Posts: 20	do i pay his debts after he dies? my husband has a huge amount of debt , mostly his business. if he should die before i divorce him, will i be responsible for his debts?

04-19-2007, 01:03 PM	#2
Ash Offline Platinum Member Join Date: Aug 2003 Location: Ontario, Canada Gender: Male Age: 46 Posts: 1,868	Is his business incorporated, or is it essentially his personal asset and liability? If it's a one person show and the finances are combined with his personal stuff than I suspect you will be liable. Hopefully, should something like that happen he has insurance that will come into play. If you try to divorce him before he were to pass away, you may be liable for half the debt anyway if it's all personal. __________________ Wisdom can come with youth ... my friends here prove it everyday.

04-19-2007, 01:13 PM	#4
Ash Offline Platinum Member Join Date: Aug 2003 Location: Ontario, Canada Gender: Male Age: 46 Posts: 1,868	Unless he keeps his business finances and his personal finances completely isolated it could be tricky. His creditors will come after the money using whatever angles they have, and if they feel his business debts were not being paid because he spent the money on himself personally, and there is a credit card link it's a problem. If this situation is quite likely (his death ... is he ill??) then I'd suggest you seek the advice of a lawyer. Certainly don't take my word for it. __________________ Wisdom can come with youth ... my friends here prove it everyday.

04-19-2007, 01:29 PM	#6
Ash Offline Platinum Member Join Date: Aug 2003 Location: Ontario, Canada Gender: Male Age: 46 Posts: 1,868	The large debt is certainly a concern. It does sound like you'll need a lawyer at some point, might as well at least consult one sooner rather than later. __________________ Wisdom can come with youth ... my friends here prove it everyday.

04-19-2007, 03:00 PM	#7
PocoDiablo Offline Platinum Member Join Date: Nov 2005 Location: Springfield, VA Gender: Male Age: 40 Posts: 2,423	If he is incorporated, the business is the only liability. If he is avoiding taxes by paying for personal items from the business account, the IRS will come after him. If you are a signer on the business account, or an employee of the company, creditors and the IRS can, and probably will, come after you for fraud. It is very difficult to set up a corporation and maintain the corporate "veil" but it can be done. It all depends on how well the corporation is set up. However, in cases of fraud, the corporation will be found to be void and he (and maybe you) will be personally liable. You have to be very careful. The only way you will know for sure will be to talk to a lawyer. __________________ Advice given is only as good as the details you provide, and even then it's just an opinion. No one knows the situation as well as you do, so trust your gut.

04-19-2007, 01:09 PM	#3
goingcrazy Offline Member Join Date: Apr 2007 Location: ca Gender: Female Posts: 20	his bs is incorporated but he uses company credit cards to pay for personal stuff also. is that going to be a problem.

04-19-2007, 01:17 PM	#5
goingcrazy Offline Member Join Date: Apr 2007 Location: ca Gender: Female Posts: 20	he has had a heart attack and does not take care of himself...drinking,eating and little exercise...he lies to me regularly about porn and other women...i am cosidering divorce because of both situations. if he has a stroke and i have to take care of him for the rest of my life i don't think i can handle that either...i know i should get an attorney on this....thanks

04-19-2007, 04:27 PM	#8
goingcrazy Offline Member Join Date: Apr 2007 Location: ca Gender: Female Posts: 20	we have only been married 2 years and i have not signed anything where it relates to him. We do not have joint accounts or even the same bank and we own nothing together. he lives in my house, drives my cars...he does pay the property taxes on the house and some expenses like travel and meals but that's it. i will consult an attorney but what do you think?

04-19-2007, 04:33 PM	#9
Ash Offline Platinum Member Join Date: Aug 2003 Location: Ontario, Canada Gender: Male Age: 46 Posts: 1,868	This is quite a short marriage. You may be in a better position than if you'd been together 20 years. It's a lot easier to show most of how things are were the same as they were 2 years ago. Had you gone in debt while married, bought the house and cars together it would have been worse. But still, a lawyer is the best way to go. __________________ Wisdom can come with youth ... my friends here prove it everyday.