In some Arizona marriages, the single largest marital asset owned by the couple is the home in which they live. When a couple divorces, a decision will need to be made about what to do about the marital home.
Couples can either come to a negotiated agreement between the two of them, or a court will make the decision. It is often more advantageous for couples to be able to communicate in order to decide for themselves. If one spouse is to receive the home in the division, the other one should have their name removed from any existing mortgage so he or she will not have their credit tied up. Thus, the staying spouse should probably be expected to refinance any mortgage in his or her own name.
In order to ensure the other spouse receives his or her share of the home’s equity, the staying spouse should be willing to give up a greater portion of other assets in exchange for keeping the home. Such money can come from a larger percentage of a retirement account, for example. People may also use gift funds in order to buy out the other spouse’s share. Finally, couples can decide to sell the home and divide the proceeds, but if they do this, they should make certain they do not sell it for below its fair market value just to get out from under it.
Property division can be difficult in a divorce, even when the divorce is uncontested. By being creative and willing to negotiate, couples can arrive at a fair settlement that protects the rights of both. An attorney may advocate on behalf of their client in order to facilitate a compromise or represent them in court.
Source: Credit.com, “How to Divide Your House in a Divorce“, Scott Sheldon, December 04, 2014