Yes, Nikah (Islamic marriage contract) is broken at death, but the specifics depend on whether it is the husband or the wife who passes away.
Here's a breakdown:
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Death of the Wife: Upon the death of the wife, the Nikah ends immediately. There is no waiting period ('Iddah) required for the husband to remarry.
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Death of the Husband: Upon the death of the husband, the Nikah does not end immediately. The Nikah remains in effect to a certain extent, and the wife must observe a waiting period ('Iddah). This 'Iddah period allows for the ascertainment of pregnancy and serves as a period of mourning. During this time, specific rulings apply to the widow. After the 'Iddah is complete, the Nikah is considered terminated, and the widow is then free to remarry.
In summary, while death always ends the Nikah, the process and its immediate implications differ based on who passes away.