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 Alabama, 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 would generally be liable for the lease payments. It is important for spouses contemplating or proceeding with a divorce to review their lease agreement to understand their obligations. The lease may contain early termination provisions that could be utilized if both parties agree to end the lease early. An attorney can provide guidance on how the lease obligations may be handled during the divorce proceedings and whether any Alabama-specific statutes may affect the outcome.