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 Nebraska, 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 legally 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 to understand the terms, including any early termination provisions that may exist. Early termination provisions could allow for the lease to be ended prior to its natural expiration date, potentially subject to penalties or additional fees. In a divorce situation, the division of debts, including lease obligations, will be part of the settlement process, and the court may order one spouse to pay the lease or both to share the cost, depending on the circumstances. It is advisable for spouses to consult with an attorney to understand their rights and obligations under the lease and under Nebraska law during a divorce.