Tenants divorce. Who gets to keep the house?

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Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
3y
Aloha,

If they can't agree on this, what do you think the odds of post-divorce Drama are? You will likely be better off letting them both Terminate with a minimum of hassle/penalty and go their separate ways. Start fresh with happy prospects.

If you want to take your chances, you first need to get updated applications from both, confirming their current income sources, and running credit reports to see if one or both are maxing out their joint credit cards. Do not automatically assume either one will pay the other alimony or support, or give them one of the cars, and do not count any as income.

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  • Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
    3y
    Quote from @Christiane Robinson:

    So my tenants want to divorce and each spouse wants to keep the house and wants the other one to go.  I'm fine with either one of them and don't want to pick sides. What do I do in this case?  Would the judge rule in this matter?


     Damn! I am not jealous of your position. I had tenants also go through a divorce while living in a townhouse I own. Thankfully, the husband decided to move out eventually. In your case, it is a bit more complicated. Since they're tenants, it will most likely be up to you to decide. If they are both good tenants in the sense of keeping the property in order, you might want to just choose the one with the higher income and lower debt (this is will be difficult as who knows how much alimony and child support will be etc).

    If they're both relatively equal in income/debt and maintaining the property...I would avoid picking sides and figure out a way to make them come to an agreement. If they are both absolutely unreasonable, I suppose you could meet with them and flip a coin to decide who stays. It's a tough spot.

  • Travis BohlingBusiness Member
    Property Manager · Gilbert, AZ · Member since 2011 · 65 posts · 78 votes
    3y

    Hi Christiane,

    Great question and example of the issues we deal with as residential landlords. Do they qualify for the home individually in terms of income?

    You have 3 options; 

    1. Let them work it out and then adjust the lease/deposit with an addendum.

    2. Keep them both on the lease and refund the deposit made payable to both of them at lease expiration. This gets more complicated if they want to renew.

    3. If neither qualifies to rent the home individually, offer to release them both from the lease.

  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    3y

    It is your property the judge has no business deciding. If the tenants can't decide and you don't want to, then they both go.

  • Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    3y
    Aloha,

    If they can't agree on this, what do you think the odds of post-divorce Drama are? You will likely be better off letting them both Terminate with a minimum of hassle/penalty and go their separate ways. Start fresh with happy prospects.

    If you want to take your chances, you first need to get updated applications from both, confirming their current income sources, and running credit reports to see if one or both are maxing out their joint credit cards. Do not automatically assume either one will pay the other alimony or support, or give them one of the cars, and do not count any as income.

  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    3y

    I’d take whoever makes more $.

  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    3y

    Make sure they both qualify on their own. If one doesn't, then the other is the one who stays. If they both qualify, tell them to sort it out themselves.

    I'm guessing they don't have school age kids because if they did whoever is the primary caregiver for the kids should be staying in the house....if they are responsible.

  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    3y
    Quote from @Bjorn Ahlblad:

    It is your property the judge has no business deciding. If the tenants can't decide and you don't want to, then they both go.

    This is poor advice. Yes, the court can decide if the parties cannot come to an agreement.

    The lease is marital property like anything else acquired during the marriage. The court can distribute the lease rights to one party or the other based upon a number of factors. Let's say there are kids involved and the wife will keep physical custody of them. Remaining in the same property, continuing in the same school, etc. could be factors. This is just an example, there are many.

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  • Michele FischerPro Member
    Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
    3y

    This is a clause in our lease so that everyone is clear who the primary tenant is, and the strongest applicant is the primary tenant:

    In the event that Tenants decide they no longer want to live together, ___________ will be considered the primary Tenant to make decisions about modifying or terminating tenancy. Deposits will not be returned (full or partial) until all tenants move out.

  • Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
    3y

    I'm assuming they were good tenants. If both earn similar income I would aim toward which is willing to sign a longer lease.

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Christiane Robinson:

    So my tenants want to divorce and each spouse wants to keep the house and wants the other one to go.  I'm fine with either one of them and don't want to pick sides. What do I do in this case?  Would the judge rule in this matter?


     Don't get involved.

    They need to decide, then tell you their decision. Your responsibility is to (a) ensure the remaining tenant can afford the rent on their own and (b) document removal of the departing tenant in writing.

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  • Member since 2023 · 5 posts · 1 vote
    3y

    That's how I handled it so far.

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Christiane Robinson:

    So my tenants want to divorce and each spouse wants to keep the house and wants the other one to go.  I'm fine with either one of them and don't want to pick sides. What do I do in this case?  Would the judge rule in this matter?


     None of your business, let them work it out, 

  • Member since 2023 · 5 posts · 1 vote
    3y
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