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 Iowa, which is not a community property state but rather a common law state, the liability for a residential lease in the event of a divorce typically depends on whose name(s) appear on the lease agreement. If both spouses are named as tenants, they are both responsible for the lease obligations. In the case of a divorce, the responsibility for the lease payments and the possibility of early termination will depend on the terms of the lease agreement itself. It is important for spouses to review their lease to understand any early termination provisions that may exist. If only one spouse is named on the lease, that spouse would generally be the one responsible for the lease obligations. However, during divorce proceedings, the court may consider the lease obligation as part of the overall division of debts and assets. It is advisable for spouses in this situation to consult with an attorney to understand their rights and obligations under Iowa law and to negotiate the best possible outcome regarding their lease obligations during the divorce process.