Who Gets the House in an Arizona Divorce?

Arizona is a community property state, which means that generally, assets acquired during the marriage are considered jointly owned by both spouses. As a result, this property is equally distributed between the spouses upon the divorce. This includes the family home.

However, Arizona law differs slightly from that of other community property states insofar as equal distribution does not necessarily mean a 50/50 split of each individual asset. Instead, the goal is to achieve an overall fair and equitable division. This can mean making adjustments as to certain assets.

The family home often presents special circumstances, especially when its status as community property is not entirely clear. The divorce court will consider various factors in deciding on allocation of the home, such as:

• The primary residence of children — The court may find that the parent having more parenting time with the minor children should remain in the family home to provide stability for them.
• Financial contributions — The court may consider each spouse’s mortgage payments, payment for renovations or contributions to the household finances.
• Dissipation of assets — The court can consider whether either spouse has wasted any community property or has caused the couple to incur wasteful debt.
• Individual needs and circumstances — The court will take into account whether one spouse has a greater financial need or has limited housing options.
• Agreements between spouses — If the spouses can reach a fair and reasonable agreement on how to divide their property, including the family home, the court will often respect their wishes.

Once each spouse’s share of the home is decided, the question becomes what method will be used to allocate the property. These are the basic options available:

• The house is sold — The house can be listed for sale and the net proceeds divided equally between the spouses. This makes economic sense if the fair market value of the home is substantially more than any existing mortgage debt.
• One spouse buys out the other — The spouse that keeps the house pays the other for their share of equity value. The payment may be in cash or the buyer may give up equivalent community property. Any mortgage may be paid off or refinanced in the name of the buyer.
• One spouse is awarded temporary possession — It may be preferable for the spouse with primary child custody to remain in the home until the children reach majority age. If the judge finds this would be beneficial, the other spouse will be given an equitable credit as compensation.

Whenever possible, the spouses should avoid letting division of home ownership become a contested issue. Such disputes are often tinged with sentimental and emotional concerns. An experienced Arizona divorce attorney can help you come up with ways to arrive at an amenable solution.

Clark & Schloss Family Law, P.C. in Scottsdale represents spouses in all aspects of divorce, including property division. Call us at 602-789-3497 or contact us online to schedule a consultation.