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Before and After Divorce: What About the Mortgage, House & Taxes in Arizona? 

How to Avoid Costly Housing Mistakes in the Midst of a Divorce

Divorce is a tough situation which opens up many emotional and financial issues to be solved. One of the most important decisions is what to do about the house. In the midst of the heavy emotional and financial turmoil, what you need most is some non-emotional, straightforward, specific answers. Once you know how a divorce affects your home, your mortgage and taxes, critical decisions are easier. Neutral, third party information can help you make logical, rather than emotional decisions. Probably the first decision is whether you want to continue to living in the house. Will the familiar surroundings bring you comfort and emotional security, or unpleasant memories? Do you want to minimize change by staying where you are, or sell your home and move to a new place that offers a new start? Only you can answer these questions, but there will almost certainly be some financial repercussions to your decision process. What can you afford? Can you manage the old house on your new budget? Is refinancing possible? Or is it better to sell and buy? How much house can you buy on your new budget? The purpose of this report is to help you ask the right questions so you can make informed decisions that will be right for your situation.


“Once you know how a divorce affects your home, mortgage and taxes critical decisions are easier. Neutral, third party information can help you make logical, rather than emotional decisions.”


4 OPTIONS

You have 4 basic housing options when in the midst of a divorce:

  1. Sell the house now and divide up the proceeds.
  2. Buy out your spouse.
  3. Have your spouse buy you out.
  4. Retain your ownership.
It’s important for you to understand the financial implications of each of these scenarios.
  1. Sell the House Now and Divide Up the Proceeds - Your primary consideration under these circumstances is to maximize your home’s selling price. We can help you avoid the common mistakes most homeowners make which compromise this outcome. As you work to get your financial affairs in order, make sure you understand what your net proceeds will be - i.e. after selling expenses, and after determining what your split of the proceeds will be. Note that the split may not be 50/50, but rather may depend on the divorce settlement, the source of the original downpayment, and the legislative property laws in your area.
  2. Buy Out Your Spouse - If you intend to keep the house yourself, you’ll have to determine how you’ll continue to meet your monthly financial obligations, if you now only have one salary. If you used two incomes to qualify for the old loan, refinancing on your own might be a challenge.
  3. Have Your Spouse Buy You Out - If you are the one who is leaving, you have the opportunity to start again in new surroundings with cash in your pocket. However, be aware that if the the old home loan is not refinanced, most lenders will consider both you and your spouse as original co-signers to be liable for the mortgage. This liability may make qualifying for a new mortgage difficult for you if you decide to purchase a home, even though you won’t have legal ownership.
  4. Retain Joint Ownership - Some divorcing couples postpone a financial decision with respect to the home and retain joint ownership for a period of time even though only one spouse lives there. While this temporary situation means you have no immediate worries in this regard, keep your eye on tax considerations which may change from the time of your divorce to the time of the ultimate sale.

When You Decide to Sell

If you and your spouse decide to sell your home, it will be important to work together through a professional to maximize your return. Differences aside, you both should be present when a listing contract is put together. Both of you should understand and sign this contract, and both should be active in the ultimate negotiations.

When You Buy Your Next Home

Use the proceeds from your previous home or buy-out to determine an affordable price range for your next home. Maintain a clear focus on getting the right home to suit your new situation. You may wish to review with an agent who offers a house-hunting service to help find a home that matches your new home-buying criteria.  

13010 W Red Bird Road, Peoria
$549,000
2 Beds ⋅ 2 Baths ⋅ 7100420 MLS ⋅ 1,682 SqFt.
Welcome to your dream home in Trilogy at Vistancia! This meticulously upgraded property with OWNED SOLAR (low electric bill) boasts exceptional curb appeal with new exterior paint, mature landscaping, welcoming paver driveway & front courtyard with beautiful vegetation. Step inside the custom front door to discover an amazingly decorated home with new wood-look luxury vinyl plank flooring, plantation shutters, custom window treatments & ceiling fans throughout. This home comes furnished (please see document tab for a few exclusions). The great room features a built-in gorgeous custom entertainment wall & offers peaceful views of the backyard, while the dedicated office/den includes a custom floor to ceiling built-in desk & workstation. At the heart of the home, the gourmet eat-in kitchen shines with engineered stone countertops, SS appliances, designer tile backsplash, under cabinet/pendant lighting, center island & breakfast bar. Storage is effortless with highly upgraded, staggered upper cabinetry with pantry & larger crown molding - equipped with roll-out shelves & a dedicated trash/recycle pull-out. The spacious owner's suite features a bright bay window overlooking the outdoor oasis & a private en-suite bathroom accessed via a custom barn door. Both the primary & secondary bathroom have been beautifully upgraded with top-tier finishes. Outside, your fenced private backyard oasis awaits--designed for ultimate outdoor living & entertaining. Enjoy an extended paver patio with serene stone water feature with wall, built-in BBQ with preparation area, large outdoor fireplace with tile niches & seating space under a covered patio with cool decking which extends living space for you to entertain or relax. Additional features include: built-in cabinet in owner's suite closet for linens, cabinets in laundry room, newer baseboards, lighting, faucets, security system, epoxy-floored garage complete with built-in storage cabinets, workbench, utility sink, convenient side service door & water softener. This home is stunning & has many custom features inside and out!

13010 W Red Bird Road, Peoria

494 S Rita Lane, Chandler
$499,950
3 Beds ⋅ 2 Baths ⋅ 7100402 MLS ⋅ 1,274 SqFt.
Welcome to 494 S Rita Lane, where timeless charm, sophisticated updates, and exceptional curb appeal come together in one of Chandler's most desirable locations! From the moment you arrive, the home's inviting presence creates a memorable first impression, setting the stage for a residence that seamlessly blends modern comfort with effortless Arizona living. Extensively renovated and refreshed in 2023, this beautifully updated home offers the feel of newer construction while preserving the character and charm of an established neighborhood. Inside, you'll find a bright, open floor plan with vaulted ceilings and updated finishes throughout, complemented by all-new kitchen appliances, a new washer and dryer, multiple recently replaced windows, a newer roof, a new water heater, and a new electrical panel complete with EV charging capability, providing both peace of mind and long-term value. Situated on an oversized lot, the property features an attractive desert-xeriscaped front yard and a spacious backyard with endless possibilities for entertaining, relaxing, gardening, or simply enjoying Arizona's beautiful weather. The generous outdoor space serves as a natural extension of the home and offers flexibility rarely found in the area. Perfectly positioned in Chandler's sought-after 85226 zip code, this residence enjoys outstanding proximity to Mountain View Park, the Chandler Fashion Center, premier shopping and dining, major employment centers, and convenient access to the Loop 101, Loop 202, and I-10 freeways. The location delivers an ideal balance of neighborhood charm and metropolitan convenience. Exceptional curb appeal, extensive modern upgrades, an oversized low-maintenance lot, and an outstanding Chandler location--a rare opportunity to enjoy refined, move-in-ready living with the added confidence of significant recent improvements.

494 S Rita Lane, Chandler

5910 E Claire Drive, Scottsdale
$1,297,000
4 Beds ⋅ 3 Baths ⋅ 7100398 MLS ⋅ 2,296 SqFt.
LISTED BELOW APPRAISED VALUE Beautifully remodeled 4-bedroom, 2.5-bath home in the highly sought-after 85254 zip code, offering the perfect blend of modern luxury, thoughtful design, and an exceptional Scottsdale location. Completely reimagined with high-end finishes throughout, this home features an expansive open floor plan, smooth-textured walls, new black-trim dual-pane windows, and designer details that create a sophisticated yet inviting atmosphere. At the heart of the home is a stunning kitchen featuring an impressive 10-foot island with waterfall-edge countertops, beautiful wood cabinetry, stainless steel appliances, a custom plaster hood vent, under-cabinet LED lighting, and a spacious pantry. The kitchen opens seamlessly to the dining and living area with a universal sliding door, making it ideal for both everyday living and entertaining. A striking electric fireplace with a custom Venetian plaster finish anchors the living room, while a distinctive metal Dutch door adds a unique architectural touch. The beautifully remodeled bathrooms feature designer tile, custom vanities, and carefully selected finishes that complement the home's modern aesthetic. The backyard is an entertainer's dream, featuring a newly resurfaced swimming pool, heated spa, and low-maintenance synthetic turf, creating the perfect setting for enjoying Arizona's beautiful weather year-round. The front exterior offers equally impressive curb appeal with a private courtyard entry, updated desert landscaping, and synthetic turf. Additional upgrades include an epoxy-finished garage, EV charger, and modern lighting throughout. Situated in one of the Valley's most desirable locations, this home offers the best of the Scottsdale lifestyle with convenient access to Kierland Commons, Scottsdale Quarter, Desert Ridge Marketplace, world-class golf, upscale dining, shopping, and entertainment. Located within the desirable Paradise Valley Unified School District, with easy access to Loop 101 and SR-51, this prime location offers both neighborhood charm and everyday convenience. Owner Agent

5910 E Claire Drive, Scottsdale

18364 N Avalon Lane, Surprise
$514,900
2 Beds ⋅ 2 Baths ⋅ 7100374 MLS ⋅ 2,035 SqFt.
Beautifully maintained home situated on an oversized corner lot along a quiet street in the highly desirable community of The Grand. This thoughtfully designed floor plan offers a bright, open feel with two bedrooms, two full bathrooms, a separate den/office, and multiple living areas. The spacious kitchen features abundant cabinetry, generous storage, and solid-surface countertops. Additional highlights include hard-surface flooring throughout with no carpet, a spacious laundry room, a two-car garage, and an expansive walk-in closet in the primary suite. The exceptional outdoor setting features a rare private pool, an expansive covered patio, mature low-maintenance landscaping, and citrus trees--ideal for relaxing or entertaining. Residents of The Grand enjoy an extraordinary array resort-style amenities, including multiple championship golf courses, tennis, pickleball, bocce ball, horseshoes, and softball. Several aquatic complexes offer lap pools, recreational pools, and heated spas, complemented by multiple fitness centers and an air-conditioned indoor walking track. Additional amenities include dog parks, walking and cycling trails, a fishing lake, woodworking and ceramics facilities, glass and art studios, photography, sewing and quilting spaces, billiards, card rooms, and many other clubs and special-interest groups. An outstanding opportunity to enjoy comfortable living, exceptional outdoor space, and the active lifestyle that makes The Grand such a sought-after community.

18364 N Avalon Lane, Surprise

1645 E Turney Avenue, Phoenix
$625,000
3 Beds ⋅ 2 Baths ⋅ 7100350 MLS ⋅ 1,851 SqFt.
Location, character, and rare versatility in the heart of the Biltmore Corridor! This unique 1925 adobe property features a charming single-family home plus a separate guest house with NO HOA--offering multiple income streams, multigenerational living, or the ideal setup for an owner-occupant desiring a private guest suite or dedicated home office. Thoughtfully renovated in 2020, the property blends historic architectural character with extensive modern improvements. Offering 1,851 total square feet, the property features a 2-bedroom, 1-bathroom main residence (1,231 sqft) and a separate 1-bedroom, 1-bathroom guest house (620 sqft), complete with its own kitchen and living area. Both residences showcase authentic cedar beams throughout every room, bringing warmth and character to the interiors. Updated kitchens feature stainless steel appliances, gas ranges, modern range hoods, and timeless subway tile backsplashes. Significant improvements extend beyond the finishes, including updated electrical wiring, plumbing, water and sewer lines, and ductwork. Located in the heart of the Biltmore Corridor, this property is just minutes from the Biltmore Financial District, Camelback Colonnade, and some of Phoenix's premier shopping, dining, and entertainment, with convenient access to SR-51, Loop 202, and I-10. An exceptional opportunity to enjoy the perfect combination of historic character, modern updates, and versatility in one of Phoenix's most sought-after locations.

1645 E Turney Avenue, Phoenix

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