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If my DH has business debt

am I responsible for it when he dies?

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Anonymous

Asked by Anonymous at 11:01 PM on Jul. 5, 2010 in Money & Work

Answers (3)
  • it depends on how the business is set up. if its a sole propietorship, then i think you would be responsible....but i'm not 100% sure of that.
    MommyToEthan

    Answer by MommyToEthan at 11:13 PM on Jul. 5, 2010

  • It depends on how it's set up, what was used to back the business etc. My father had his own business, he had a heart attack that left him in a comma for 4 years before he finally passed away. He had a second mortgage on the home to back his business; working like he was the bills were being payed and it was fine. However being in a comma for 4 years left my mom responsible for it all. She lost her home. It was the 2nd mortgage that did it. If that wasn't on the home she may have been able to keep the house. If my father would have died the day of his heart attack, she would have still lost her home from the business debt.

    Truth it would depend on how everything is set up and was is used to back or start the business. It's not unusual for businesses to start on a loan. I would prepare to start handling the debt in his passing.
    SAHMinIL2

    Answer by SAHMinIL2 at 9:02 AM on Jul. 6, 2010

  • If you are married, then yes. His debts become your debts. LLc, S-corp, any small business that only has 1 owner or member. That's 50% of the reason we aren't married. If the business goes under, the house and car are in MY name, and the business is in HIS name.
    Ezranight

    Answer by Ezranight at 8:37 AM on Jul. 7, 2010

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