Arizona couples tend to have a few significant assets such as a retirement or bank account that will need to be divided in their divorces. In addition, a couple could own a home that has significant equity that must be split. In some cases, the home will be liquidated with each person sharing a portion of that equity. In others, one person will gain control of the home while the other receives other assets in return.
Whoever gains control of the home may have the option of refinancing the current mortgage. This gets the other spouse off of the loan and may also make it possible to cash out equity in the property. If this is not possible, a divorcing couple could choose to keep the current mortgage in place. Depending on when the mortgage was issued, an individual may assume the loan and put it in his or her name.
Homeowners generally benefit the most by assuming a loan if their current rates are lower than current advertised interest rates. Assuming a loan may also help a person avoid paying closing costs associated with a refinance. Lenders will typically do the same due diligence as if a person were buying a home for the first time.
The end of a marriage may result in a significant adjustment for both adults and any children they have. Parents and childless individuals alike who are seeking to keep a marital home may work with an attorney to determine whether it makes financial sense to do so. An attorney may help a parent obtain spousal or child support that may make it easier to pay a mortgage and other expenses related to owning a home.