How To Sell A House During Divorce in Arizona
Divorce is never easy, and the process becomes even more complicated when shared assets like real estate are involved. If you’re navigating a divorce in Arizona and wondering how to handle your home, this guide will provide you with the essential information you need to make informed decisions.
Table of Contents
1. Can You Divorce Without Selling the House?
2. Who Gets the House in a Divorce?
3. Options for Handling the Marital Home
• One Spouse Buys Out the Other’s Legal Interest
• One Spouse Keeps Use and Occupancy
• Sell the House and Split the Equity
4. Steps to Sell a Home During Divorce
5. Sell Your House AS-IS to a Cash Buyer
Can You Divorce Without Selling the House?
In Arizona, you have several options when it comes to your marital home during a divorce. The first step is to inform your lawyers and the court about the date you acquired the house. This will help determine if the property needs to be sold and the assets divided equitably or if the house is considered separate property.
If the court decides the property is “separate property” (e.g., purchased before the marriage, gifted, or inherited), the other spouse has no rights to it. However, there are exceptions, such as significant improvements made to the property during the marriage.
A court will consider several factors to determine who gets the house, including:
• The property’s value.
• The financial circumstances of each partner.
• The employability of each partner.
• Contributions (physical and monetary) to the marital home.
• The age and health of each partner.
• Custody arrangements for children.
Who Gets the House in a Divorce?
Arizona is a community property state, meaning that all assets acquired during the marriage are typically divided 50/50. However, the court can consider various factors to ensure a fair division, which may not always mean an equal split.
Options for Handling the Marital Home
One Spouse Buys Out the Other’s Legal Interest
In some cases, one spouse may buy out the other’s legal interest in the home, allowing them to keep the property. This involves negotiating a fair price and ensuring the buying spouse can qualify for a new mortgage in their name alone.
One Spouse Keeps Use and Occupancy
Sometimes, the court may allow one spouse to keep use and occupancy of the home until a specified event, such as when the youngest child turns eighteen. The occupying spouse may or may not be responsible for the mortgage and other expenses.
Co-own the Home
Co-owning the home can be a viable option, especially if it benefits the children by providing stability. This arrangement requires trust and a clear agreement on financial responsibilities and future decisions regarding the property.
Sell the House and Split the Equity
Selling the house and splitting the proceeds can be the simplest solution. This approach ensures both parties receive their share of the equity, allowing them to move on. If the housing market is slow or the house requires repairs, consider selling to a direct homebuyer or investor for a faster sale.
Steps to Sell a Home During Divorce
1. Hire a Divorce Specialist Real Estate Agent
Work with a real estate agent experienced in handling divorce situations. They can guide you through the process and help minimize stress.
2. Agree on Home Sale Specifics
Decide whether to sell the house quickly or make repairs to maximize its value. Agree on how to split expenses and profits, and resolve any disagreements through your lawyers to avoid costly court interventions.
3. Know What to Expect to Close the Sale
Review offers from potential buyers together, aiming for a fair and mutually beneficial decision. Establish a strategy for evaluating offers before listing the property.
4. Divide the Proceeds
Once the house is sold, the escrow company will handle any liens or obligations before distributing the remaining proceeds according to your divorce agreement.
Sell Your House AS-IS to a Cash Buyer
If you and your ex-partner are unable to communicate or need a quick resolution, selling to a cash buyer may be the best option. Cash buyers, like Patriot Flip, purchase properties in any condition, often closing quickly and without the need for repairs or extensive negotiations. If a direct home sale sounds like the best option for you, let’s chat! Call us day or night at 602.625.0806.
For more information on Divorce & Real Estate, you can refer to local Arizona resources such as the Arizona Department of Real Estate and AZLawHelp.org.