When renting a home with a spouse, questions often come up regarding who needs to sign the lease agreement. In this article, we will explore some common issues and considerations around lease signing for married couples renting a home.
Landlord's Perspective
From the landlord's perspective, it is beneficial to have both spouses sign the lease. With two signatures on the lease, the landlord has recourse against two people should any issues arise with rent payments or the condition of the property.
If one spouse pays the rent but then loses their job or passes away, the landlord can pursue the other spouse for unpaid rent rather than having to terminate the lease. Having both parties sign the lease provides the landlord with more security.
Community Property Considerations
For couples living in community property states, debts incurred by one spouse during the marriage typically become legally shared by both spouses, regardless of whose name is on a loan or lease. So if one spouse is the sole leaseholder but then disappears owing back rent, the landlord may be able to sue the other spouse to collect what is owed due to community property laws.
Having both spouses sign avoids this type of situation from occurring in the first place where community property laws would make one spouse responsible even without signing.
Rights of Each Spouse
When both spouses have signed the lease, they each gain equal rights to live in the rented property over the term of the lease agreement. For example, if the relationship ends but the lease is still in effect, one spouse cannot legally prevent the other from accessing the home. The lease also becomes a shared marital asset that must be divided in the event of divorce, similar to dividing ownership of other joint property.
Leasehold as a Marital Asset
When married couples jointly sign a lease, their shared right to lease the property (known as the leasehold interest) becomes a marital asset that must be divided like any other asset in divorce proceedings.
If the lease expires before the divorce is finalized, one spouse may negotiate to have full control transferred to them through the divorce decree to avoid ambiguity over rights and responsibilities.
Divorce Scenarios
In a divorce where both spouses' names are on the lease, a family law court will determine how to divide responsibilities under the remaining lease term. One option is allowing one person to buy out the other's share of the leasehold asset.
The vacating spouse should ensure they are absolved of future financial liability through a legally binding agreement. Security deposits also require division.
Breaking the Lease
If only one spouse's name is on the lease and they want to move out before it ends, legally the leaseholder spouse remains responsible for lease obligations like rent. However, landlords sometimes allow the other spouse to formally assume the lease.
But this depends on landlord approval and if the assuming spouse passes the same screening criteria as the original leaseholder. Broken leases can also hurt future rental applications.
Negotiating Changes
Major life changes like divorce deserve negotiated amendments rather than one spouse unexpectedly asserting their technical rights under the original terms. Landlords also prefer stability.
All parties usually benefit most from cooperatively discussing changes rather than unilateral actions that could damage credit or increase costs. Compromise protects all.
Conclusion
In summary, while not strictly required, having both spouses' names on a rental lease provides various legal protections for landlords and each spouse. It avoids issues down the road from community property or divorce. Negotiating changes openly and cooperatively serves all parties better than technical assertions of rights, especially during major relationship transitions.
When renting together, properly considering each perspective helps married couples establish stable housing.
