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If they'd moved in and YOUR situation had changed I bet he wouldn't have agreed to rip up the contract and move out to meet your needs!

Agree with Ausprop. How does it benefit you to let him out of the lease? If he wasn't sure enough of the relationship to sign it, then he shouldn't have. Not your problem. Doesn't mean he has to live there. Doesn't mean she can't stay and pay the rent alone. Just means you have two people...