The family home often stands as the single most valuable asset a couple owns, making its division a critical issue in a divorce. Under Arizona’s community property laws, assets acquired during the marriage are generally divided equally between the spouses. However, the family home presents unique challenges that require thoughtful solutions.

Any property acquired during the marriage is considered community property, meaning both spouses have equal ownership. This applies to the family home, regardless of whose name is on the deed or mortgage. Exceptions exist for real property acquired before the marriage or through inheritance or gift.

Several factors can influence the decision on dividing the family home, including the couple’s general financial circumstances, the real estate market and consideration of the children’s best interests. The following are several common approaches:

1. Selling the home and splitting the proceeds — This is the most straightforward option. It provides a clean break and allows both parties to start anew financially. However, selling the home can be financially disadvantageous if the real estate market has slumped. A sale can also be emotionally wrenching if children are involved and/or the couple has lived there for many years.

2. One spouse buys out the other — This arrangement allows one party to retain the property, possibly maintaining stability and continuity for any children involved. The buying spouse must have sufficient financial resources to purchase the other spouse’s interest, either through cash, credit, refinancing the mortgage or trading other assets of equivalent value.

3. Deferred sale — In some cases, couples agree to hold onto the home until a later date, such as when the children reach adulthood, and then sell it and split the profits. A deferred sale may or may not include a “nesting” arrangement, where the parents rotate in and out of the home according to a set schedule while the children remain in place. This requires a high level of cooperation between the spouses.

4. Continuing co-ownership — Some couples opt to continue co-owning the home post-divorce, treating it as a shared investment. This option requires a clear agreement on managing expenses, mortgage payments and eventual sale terms. It is less common due to the potential for ongoing conflict and complications.

An Arizona family law attorney experienced in property division during divorce can provide valuable guidance on the most apt approach for your specific situation, one aimed at best protecting your rights and interests.

Clark & Schloss Family Law, P.C. is a full-service family law firm in Scottsdale, Arizona, representing people throughout Maricopa County in all aspects of divorce proceedings. Contact us online or call 602-789-3497 for a consultation.