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 North Carolina, which is a common law state and not a community property state, the liability for a residential lease in the context of a divorce typically depends on whose name(s) appear on the lease agreement. If both spouses are named as tenants, they are both likely to be responsible for the lease obligations. However, if only one spouse is named, that spouse may be solely responsible. It is important for spouses to review their lease agreement for any early termination provisions that might allow them to end the lease early. Such provisions could include penalties or conditions that must be met for early termination. In the event of a divorce, the terms of the lease and state law will guide the division of this liability. It is advisable for spouses to consult with an attorney to understand their rights and obligations under the lease and how it may be affected by their divorce proceedings.