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 Idaho, which is a community property state, both spouses may be held responsible for lease obligations during a divorce, regardless of whose name is on the lease agreement. This means that even if only one spouse is named as a tenant, the other spouse could still be liable for lease payments due to the state's community property laws. These laws generally stipulate that debts incurred during the marriage are the responsibility of both spouses. When contemplating or proceeding with a divorce, it is important for spouses to review their lease agreement to understand the terms, including any provisions for early termination. If early termination of the lease is a consideration, they should look for clauses that may allow for this, such as a break clause or penalties for ending the lease early. An attorney can provide guidance on how the lease and community property laws may interact in the context of a divorce.