Spouses contemplating or proceeding with a divorce who have a residential lease obligation should read the lease agreement to determine if both spouses are named as tenants, and whether there are early termination provisions that may be available—if the spouses are interested in early termination of the lease.
If the spouses live in a community property state (as opposed to a common law state), both spouses may be liable for the lease payments even if both spouses are not named as tenants in the lease agreement. Community property states generally include Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
In California, which is a community property state, both spouses may be held responsible for lease obligations incurred during the marriage, regardless of whether both names are on the lease agreement. When contemplating or proceeding with a divorce, it is important for spouses to review their residential lease to understand their obligations. The lease should be checked for the names of the tenants and any early termination clauses. An early termination clause may allow the tenants to end the lease before the agreed-upon date, potentially subject to certain conditions or penalties. If both spouses are named as tenants, they are both contractually liable to the landlord. Even if only one spouse is named, the other may still be liable for lease payments due to California's community property laws, which consider debts incurred during the marriage as the responsibility of both parties. It is advisable for spouses in this situation to consult with an attorney to understand their rights and obligations and to explore the best course of action regarding their lease during a divorce.