Going through a divorce means navigating the challenging process of dividing your shared assets between you and your spouse. Arizona follows a community property approach for dividing marital property during divorce. This rule seeks to divide assets equally between the spouses.
If you and your spouse share your home, selling it may be the easiest way to divide its value. Can you sell your house during a divorce in Arizona? Here is what you need to know.
Selling Your Home Before, During, or After a Divorce in Arizona Law
Many divorcing couples choose to sell the marital home and divide the proceeds. But you should understand that in Arizona, you may not legally be able to sell the home during your divorce.
Arizona prevents the sale of community property while the divorce is pending without the other spouse’s consent or a court order. This means that either party generally cannot sell the house during the divorce if it is considered “community property,” meaning property acquired during the marriage. Even if only one spouse’s name is on the mortgage or deed, the home could still be considered “community property” if they acquired it during the marriage.
There are a few exceptions that may allow you to sell the home during the divorce:
- You cannot afford attorney fees without selling the home
- You need to sell the home to afford your basic needs because you are no longer receiving financial support from your spouse
- Selling the home would be considered part of the “ordinary course of business” for you, such as if you are a real estate investor and regularly buy and sell property
If you think you may qualify for one of these exceptions, it is important to speak with an attorney to verify that you do before listing the home for sale.
In many cases, divorcing couples choose to sell their house before or after the divorce to bypass this legal restriction. If you and your spouse are on good terms and in agreement about the divorce, selling the house before you file for divorce can allow you to divide the proceeds cleanly and start moving forward. Alternatively, you might choose to sell the house after the divorce has been finalized to meet the terms of a settlement agreement or adhere to a court order regarding property division.
Reasons To Sell Your House During a Divorce
Divorce comes with a lot of emotional challenges, and for many, the idea of selling the family home can be difficult to process. But in many cases, selling the home is the best option for all parties involved. You may consider selling your house before or after a divorce in Arizona for a few reasons.
- Easily divide the proceeds with your spouse: Selling the home makes it much easier to divide it equally under Arizona’s divorce law. You can simply divide the proceeds from the sale between you and your spouse.
- Avoid future disagreements about maintaining the home: You might initially decide to keep sharing the house until sometime down the line. But this can lead to future conflicts about who pays for what, how you will effectively “share” the property, and when you will eventually sell it.
- Avoid one spouse shouldering the entire mortgage: Sometimes, divorcing couples have no option but to sell the house because neither can afford the costs of the mortgage, property taxes, utilities, and other ongoing expenses on their own.
- Gain a clean slate and start moving forward: Divorce offers a fresh start, and selling the home is one way to promote a clean break from your spouse and start moving forward. You won’t have to continue communicating about house maintenance after you are divorced.
Meanwhile, you may choose not to sell the home if you have shared children. In many cases, keeping your children in the family home can provide stability to help them manage the stress and change that comes with their parents’ divorce.
Other Options for Dividing Property During a Divorce
Selling your house is one option to consider during divorce, but another option may better suit your needs.
- One spouse buys out the other spouse’s portion of the house: If one of you prefers to keep the house, you can “buy out” the other spouse’s portion by refinancing the mortgage and giving the other spouse their share of the equity as a lump sum.
- One spouse keeps the house, and the other receives an equal portion of other shared assets: If you and your spouse have significant assets to split in the divorce, one of you may be able to keep the home in exchange for giving other assets of similar value to the other spouse during the property division process.
- Both spouses co-own the house temporarily: In some cases, divorcing spouses may be able to amicably share the residence temporarily until they determine the right path forward. This may be an option in cases involving children; the parents can take turns living in the house with the children instead of requiring the children to go back and forth between each parent’s residence.
- Both spouses move out and rent the property to a tenant: Amicable spouses may also consider co-owning the house and renting it to a tenant, then dividing the rental income from the property.
While these are all options to consider, selling the home is often the easiest. It may be worth talking to an attorney about divorce and real estate considerations to receive legal guidance based on your unique situation.
Considerations for Selling a House During Divorce in Arizona
If you are leaning toward selling your house before or after a divorce in Arizona, take the time to review a few considerations that could impact your selling process.
- Who owns the home? Determine who actually owns the home or whether both of you are on the mortgage and deed. If only one spouse owns the home, they may need to be more involved in the selling process.
- When was the home purchased? If one spouse purchased the home before the marriage, it may not be considered community property. However, the increase in equity during the marriage could be part of the couple’s marital assets and need to be divided between them.
- Does your spouse agree with the sale? The process is often a lot smoother when both spouses are in agreement about selling the house. If one spouse disagrees, they may need to involve the court and have a judge decide how they will effectively split this marital asset.
- How much equity do you have in the home? Equity includes the amount you have already paid toward the mortgage and any increase in value since you purchased the home. If you were to sell the house on the market, this is the amount you would aim to walk away from the sale with and divide between you and your spouse.
- Will you list it on the market or use a cash buyer? Selling a home that you share will require you and your spouse to cooperate. You may consider working with a cash buyer for your Arizona divorce property sale to streamline the process.
The Benefits of Selling to a Cash Buyer
If you are thinking of selling your house during a divorce in Arizona, working with a cash buyer may be a good idea. Cash buyers like Joe Homebuyer can purchase the house as-is, allowing you and your spouse to divide the proceeds and start moving forward.
These are the benefits of working with a cash buyer for a co-owner home sale during divorce:
- Sell the house in as little as seven days: Navigating a long, drawn-out selling process during a divorce can add stress to an already tumultuous situation. With a cash buyer, you can sell the home quickly, often within seven days.
- Avoid paying fees or closing costs: You and your spouse won’t need to pay any fees or closing costs when you sell to a cash home buyer, making it easier to divide the asset cleanly.
- Choose a closing date that works for everyone: A cash buyer can be flexible with your closing date and time, allowing you to choose a day that works for everyone.
- The buyer handles all repairs: You won’t need to add to your stress by trying to make repairs or updates to the home before selling. A cash buyer can purchase it in any condition and handle all repairs for you.
- No need for showings or open houses: You won’t need to go through the public ordeal of showing your home to interested buyers or hosting an open house while trying to keep the divorce private.
Request Your Cash Offer From Joe Homebuyer
If you want to sell your house before or after a divorce in Arizona, Joe Homebuyer can make the process hassle-free. You can request your free, no-obligation cash offer today and discuss it with your spouse, then move forward with the sale when the time is right for you.
Call Joe Homebuyer at 602-529-1268 to request your cash offer.
