When divorcing, you must address what to do with your marital home.
Arizona is a community property state, requiring spouses to divide all marital assets fairly. That usually (but not always) means 50/50. Since it is impossible to cut your house in half, you must consider alternatives.
Sell your house and split the net profit
If two incomes are necessary to make the mortgage payment, selling and obtaining a more affordable home reduces financial stress. Selling your property and sharing the earnings works well and eliminates determining the future value. However, selling may not be a good idea if the market is undesirable, the house’s value is low, or one of you needs or wants to stay in the family home.
Buy out your spouse
You can take over the loan payments if you wish to remain in your current house. To do this, you must determine how much equity your spouse has in the home and buy them out in full or with a payment plan. This option removes your partner from the financial responsibility of your mortgage while still dividing marital assets equally.
Co-own the house until your children are adults
If you and your spouse agree that keeping your children in the family home is best, you can choose to remain on the mortgage together. This arrangement requires a detailed payment schedule and only works well if you and your spouse trust each other to maintain good standing with the bank.
Remain living in the home together
You can choose to stay in the house together with your partner following your divorce. This choice is not ideal for most people but can minimize disruption to your family, reduce financial strain, and enable equal co-parenting.
By analyzing your unique situation and understanding the laws in Arizona, you can discover a solution that meets your needs.