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 Oregon, which is not a community property state but rather a common law 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. 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 specific conditions under which early termination is allowed. Since Oregon does not follow community property laws, the spouse not named on the lease may not be liable for lease payments after a divorce unless they have otherwise agreed to be responsible for the lease or are ordered to make payments by a court.