We're currently open and in order to keep everyone safe during this difficult time, we are offering phone and video consultations.

During a divorce in Arizona, what if neither of us can afford the house in Scottsdale?

This is no different than if you were together. You have the same problems and issues as if you were together (divorce just makes it more difficult). The mortgage company expects both of you to pay. If there is a deficiency judgment because of a line of credit, the creditor will look to both of you to pay, no matter what your divorce agreement says. Decide who pays for repairs during the dissolution, who should sell and how long they have to sell. If one party agrees to buy out the other party, you need to agree when you appraise the house.

What Happens if the House is Community Property? What if it is Sole and Separate?

Option one is one spouse stays in the house and makes all the payments; the parties get the house appraised and decide the value of the house. Then the party who wants to live in the house pays the other spouse half the value of the house. This can be paid with cash in a refinance or can be “horse-traded” with other assets. Option two is the parties can sell the house and split the proceeds equally. The parties can split the costs of upkeep until the sale, or they can decide that one party lives there and makes all payments until the sale. Or, one spouse could move out and then combine all living expenses, with each paying half of those total expenses or each paying their prorated share, according to each party’s income. Option three is one party stays in the house for a predetermined amount of time, such as one to two years, until a refinance must be undertaken.

There are a number of creative ways to determine the division; it is limited only by imagination and the ability to cooperate. The end goal is to split the proceeds 50-50 and not make the process more difficult than it needs to be for either party.

If only one spouse’s name is on the deed, or if one party owned the house prior to the marriage, it might be considered that spouse’s sole and separate property. This can become a complicated legal issue and you should seek the advice of an attorney if you have any questions.

Schedule Your Consultation

Fill out the form below