Under Arizona’s community property laws, both spouses equally own the assets obtained during their marriage. To take ownership of your house, you may need to buy your spouse’s half. As reported by Money.com, you could also keep your house by giving up other assets equal to your spouse’s equity share.
Your property’s current market price determines how much the house could sell for. If you subtract the mortgage balance and taxes from that selling price, half of that remaining amount may reflect what you might need to pay your spouse for his or her equity.
How could I keep the home if I do not have cash?
Many individuals leave their marriages without enough savings or cash reserves to buy an ex-spouse’s half of a home. If you have a retirement account, however, its equity also divides during a divorce. This may provide an option to acquire the home.
Contributions to a retirement plan during a marriage generally belong to both spouses. Each individual has a right to half its value when divorcing. By reviewing the current equity in your 401(k), for example, you could see if you can “trade” it for your home.
Will I need to take over mortgage payments?
An existing mortgage may require you to refinance the note as a single individual. If approved, the new loan will not include your ex-spouse on the documents. He or she will no longer owe a duty to pay the debt on your property.
To secure a home loan, banks typically review your earnings and credit record. If your divorce settlement includes court-ordered financial support for your children, a lender could use it to consider approving your mortgage.
An Arizona divorce does not necessarily mean you will lose your home. You and your soon-to-be ex-spouse may work out a trade or purchase arrangement that lets you keep it.