Down the drain.
Courtesy of the Environmental Protection Agency;
"Funeral Home Waste Disposal
Because many funeral homes employ an on-site sanitary system for disposal of embalming wastewater, EPA regulates these as Class V industrial process water and waste disposal wells. EPA has found that wastewater includes external corporeal wash water, internal body fluids, as well as residual arterial embalming chemicals. These chemicals typically include formaldehyde, phenol, and methanol."
Courtesy of the Environmental Protection Agency;
"Funeral Home Waste Disposal
Because many funeral homes employ an on-site sanitary system for disposal of embalming wastewater, EPA regulates these as Class V industrial process water and waste disposal wells. EPA has found that wastewater includes external corporeal wash water, internal body fluids, as well as residual arterial embalming chemicals. These chemicals typically include formaldehyde, phenol, and methanol."
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Its considered biological waste and is safely disposed of.