Who gets the house in a divorce in AZ?
For most divorcing couples, their home is the biggest asset they own, so both spouses are naturally anxious as to what will become of their home, the mortgage, and the EquityEquity is a principle that permits the Court to apply certain principles in order to achieve a just and fair result. The applications the Court may employ are called equitable defenses. Arizona’s family law courts are courts of equity. Atkinson v. Atkinson, 405 P.2d 919, 921…Read more about Equity in the house.
Arizona is a Community PropertyThis is property that belongs equally to both spouses. It includes any property, asset, or liability either party acquires during the marriage with the exception of property acquired by gift or inheritance. Parties can opt out of community property laws with a prenuptial…Read more about Community Property state, which means that anything either of you acquire during the marriage belongs to both of you equally. Assuming you bought the home together during your marriage, the house belongs to each of you in equal shares. If the house was a gift or inherited, or one spouse owned the home before marriage, the division can get more complicated. For simplicity, we will walk you through common questions regarding the division of a house purchased during the marriage.
How is a house divided in divorce?
A house will be divided either by selling it or having one spouse buy out the other spouse’s interest.
Buy Out. If one spouse wants to stay in the house, they must buy out the other spouse’s share of the equity and will need to refinance it solely in their name. For example, if the house is worth $400,000.00, and the parties owe $200,000.00, then the parties have $200,000.00 in EquityEquity is a principle that permits the Court to apply certain principles in order to achieve a just and fair result. The applications the Court may employ are called equitable defenses. Arizona’s family law courts are courts of equity. Atkinson v. Atkinson, 405 P.2d 919, 921…Read more about Equity, which belongs equally to both spouses. That means the spouse keeping the resident must pay $100,000.00 to the other spouse to buy out their interest.
Generally, the buyout occurs through refinancing the house. As part of the new loan, the lender will pay the buyout and include it in the new mortgage.
Sell. The parties can also agree to sell the house and split the Net equityThe difference between the value of the asset and what is owed on the asset plus any closing costs. It is generally synonymous with equity. Frequently, a divorcing couple is ordered to split the net equity. For example, if they owe $300,000.00 on the home and sell it for…Read more about Net equity (the amount left over after paying off the existing mortgage, realtor fees, repairs, and other closing costs).
When You Can’t Agree on What to Do with the Home
We can’t agree …
… on whether to buy or sell the house. Then the Court will decide what to do with the house. This will require a TrialA court hearing in which evidence and testimony are taken, and the Court makes a final determination of the issues raised in a petition. Trials and evidentiary hearings are somewhat synonymous, but the difference is one of scope: Evidentiary hearings are more limited in scope…Read more about Trial. Most likely, a Court will order it sold.
… on how much the home is worth. Then you’ll need to get it appraised and go with appraiser’s amount.
… on an appraiser? Then each of you will need to get your own appraisal and let the Court decide what the actual value is. This will require a trial.
… on when to sell the house? You want to make sure you have deadlines in your Divorce Decree. Typically, a house should be sold or refinanced within 60 days of the divorce being finalized.
