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 Tennessee, which is not a community property state but rather a common law state, the liability for a residential lease during a divorce typically depends on whose name is on the lease agreement. If both spouses are named as tenants, they are both responsible for the lease obligations. If only one spouse is named, that spouse would generally be liable for the lease. However, during divorce proceedings, the court may order the division of such debts between the spouses. It is important for spouses to review their lease agreement for any early termination provisions that may allow them to end the lease early. Such provisions could include penalties or conditions that must be met for early termination. It is advisable for spouses to consult with an attorney to understand their rights and obligations regarding the lease during the divorce process.