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 Kentucky, which is a common law state and not a community property 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. However, if only one spouse is named, that spouse may be solely responsible for the lease. It is important for spouses to review their lease agreement for any early termination provisions that might allow them to end the lease early, potentially reducing their financial obligations. These provisions may include penalties or conditions for early termination that should be understood before making a decision. In a divorce situation, the division of debts, including lease obligations, will be determined as part of the divorce proceedings, and the court may order one spouse to pay the lease or divide the responsibility between both parties, regardless of whose name is on the lease.