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 Colorado, which is not a community property state but rather a common law property state, the liability for a residential lease during a divorce typically depends on whose name(s) appear on the lease agreement. If both spouses are named as tenants, they are both likely responsible for the lease obligations. However, if only one spouse is named, that spouse may be primarily liable. It is important for spouses to review their lease agreement for any early termination provisions that may allow them to end the lease early, potentially reducing their financial obligations. This could be particularly relevant if one or both parties need to move out as a result of the divorce. In any case, it is advisable for spouses to negotiate the division of lease responsibilities as part of their divorce settlement. An attorney can provide guidance on how to navigate these issues in accordance with Colorado law and the specific terms of the lease agreement.