Debt Collection: Being held liable for another's debt

Debt Collection: Being held liable for another's debt

I just found out that I have been giving out incorrect (or at least incomplete) advice regarding debt within a marriage, so I would like to set the record straight.  I used to tell people that they cannot be held liable for debts of their spouse as long as the spouse acquired that debt in their sole name.  This advice was usually given in an estate planning context- which is why this advice will hold true 95% of the time.  In law, as in life, there is always the other 5%.  As a whole, the statement that "one spouse cannot be held liable for the other's debt" is technically inaccurrate.

A spouse can be held liable for the other's medical bills if the following factors apply:

1) the patient spouse is unable to pay

2) the non-patient spouse is able to pay

If the above factors are shown, the non-patient spouse may be held liable for the patient spouse's medical bills unless the non patient spouse has been abandoned by the other spouse without cause.

As I stated earlier, I usually get asked about this subject in an estate planning context.  Once one spouse passes away,  it is rare for the creditor to collect and here is why:  In Ohio, the creditor's claim must be made against the decedent's estate within 6 months of the death.  If the creditor does not assert its claim within 6 months, the creditor's claim is barred against the estate.  Once the claim is barred against the estate, the above rule applies.

If I am the attorney with a case like this, I would first claim that the non-patient spouse cannot pay, especially now that the spouse has to pay for the cost of burying the other, but I would also claim that the patient spouse abandoned the non-patient spouse without cause (by dying).  I am not sure if this case has been litigated yet, but if not, it will be eventually. 

Even with the above caviat, it is safe to tell clients that as a general rule, they will not be held liable for the debt's of their spouse.  It is always important to seek the advice of an attorney if you find yourself in a situation where people are claiming that you are liable for another's debt.  Creditors (and others) like to tell family members that they will be held liable in an effort to collect.  Just because a creditor tells you this, it does not make it true.  Always seek the advice of a local attorney to address your specific situation.