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.

Indiana is not a community property state; it is a common law state. In Indiana, if both spouses are named as tenants on a residential lease, they are both legally responsible for the lease obligations. This means that in the event of a divorce, both parties may still be liable for the lease payments until the lease term ends or until they come to an agreement with the landlord or through the court. If only one spouse is named on the lease, typically only that spouse would be held responsible for the lease payments. However, during divorce proceedings, the court may consider the lease obligation as part of the marital debt and decide on the responsibility for lease payments as part of the divorce settlement. Spouses should review their lease agreement for any early termination provisions, which may allow them to end the lease early, potentially subject to penalties or additional costs. It is advisable for spouses to negotiate with their landlord or seek the assistance of an attorney to understand their rights and obligations under the lease when contemplating or proceeding with a divorce.