Arizona Divorce Mortgage Guide: How to Keep Your Home After Divorce

Here are the three most common ways couples handle the marital home:

1. One spouse keeps the home.
One spouse may choose to keep the home by buying out the other spouse's share of the equity. This usually requires determining the home's current value and refinancing the mortgage into one person's name. This option can provide stability, especially for families with children. Remember simply changing names on the property title (via a quitclaim deed) only changes legal ownership, not financial responsibility for the loan.

2. Sell the home and divide the proceeds.
If keeping the home isn't practical, selling it and sharing the proceeds allows both spouses to move forward with a clean financial break. It is best to make sure that the escrow company provides each spouse their separate net proceeds check from the sale. We have seen situations where one spouse receives the check and then refuses to pay the other spouse their share. Now everyone is back in court.   

3. Continue co-owning the home.
Some couples agree to keep the home for a period of time, often until children reach a certain age. This requires clear agreements about expenses, responsibilities, and when the home will eventually be sold. Remember your current lender is not bound by your divorce decree. If you both signed the original loan, then you are both 100% responsible for payments even if the Decree assigns the home and mortgage to one spouse. If your spouse is required to make mortgage payments and misses a payment- it will also appear on your credit report too.  

The good news is that we're here to help.

You have options, and understanding them early can help reduce stress and avoid costly surprises.

How We Help You
Our Arizona mortgage team will work closely with your family law attorneys and financial professionals so you can move forward knowing you have made the wisest financial decision.  

Whether you need to remove a spouse from the mortgage, buy out your spouse's equity, or determine whether refinancing is possible, we'll explain your options in plain English and help you make informed decisions.

Great Tools From Our Team:  

• E-Book- Divorce and Your Home: Your Arizona Guide to Refinancing and Buying Out a Spouse 
• Monthly electronic Value Report that shows a range of value for your home, equity analysis, and neighborhood sales trends