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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.  

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

24294 N 162nd Lane, Surprise
$789,722
4 Beds ⋅ 3 Baths ⋅ 7100305 MLS ⋅ 2,670 SqFt.
Exceptional Model Home | 4 Bedrooms | 3-Car Garage - Showcasing sophisticated design and exceptional attention to detail, this impressive 2,670-square-foot model home offers 4 bedrooms, an open study, 3 bathrooms, and a 3-car garage. Ten-foot ceilings, elegant herringbone plank tile flooring, and a thoughtfully designed open-concept layout create a welcoming sense of space throughout. The expansive great room and generous dining area provide an ideal setting for entertaining, everyday living, and gathering with family and friends. At the heart of the home, the gourmet kitchen makes a striking statement with premium Wolf appliances, including a 42-inch built-in refrigerator, sleek quartz countertops, a designer tile backsplash, an oversized island, and an... ..expansive walk-in pantry. Under-cabinet lighting and stylish pendant fixtures complete this beautifully appointed culinary space. Indoor-outdoor living takes center stage with a dramatic 16-foot Atrium sliding glass door that opens to a spacious covered patio and professionally landscaped backyard. Additional upscale appointments include 8-foot interior doors, two-tone paint, ceiling fans, plantation shutters, a tankless water heater, and a soft-water loop. Designed with comfort, efficiency, and wellness in mind, this home is ENERGY STAR® Certified and Indoor airPLUS rated, offering enhanced energy efficiency and improved indoor air quality. Enjoy an exceptional lifestyle in this vibrant master-planned community, featuring miles of scenic pathways and an impressive collection of resort-style amenities. The aquatic center boasts a large pool with splash features and a dedicated lap pool, while outdoor recreation options include picnic areas with BBQ grills, multiple playgrounds, basketball, sand volleyball, pickleball, bocce ball, ping pong, cornhole, and more. A remarkable combination of designer finishes, spacious living, seamless indoor-outdoor entertaining, and resort-inspired amenities makes this model home a standout opportunity.

24294 N 162nd Lane, Surprise

5946 W Villa Theresa Drive, Glendale
$595,000
4 Beds ⋅ 3 Baths ⋅ 7100293 MLS ⋅ 2,315 SqFt.
Welcome to Acacia Cove! This beautifully upgraded 4-bedroom, 3-full bathroom home combines inviting living spaces, stylish finishes, and a resort-style backyard. Major updates include a new roof (2025), new windows (2024) with a transferable warranty, and two new A/C units with an air purifier (2023). The home also features a leased solar system to help offset electricity costs. Attractive curb appeal showcases thoughtfully designed landscaping with artificial turf for easy, low-maintenance upkeep. Inside, wood flooring, vaulted ceilings, a warm color palette, and upgraded finishes create a welcoming atmosphere. The spacious kitchen opens to the great room and features warm cabinetry with crown molding, granite countertops, glass tile backsplash, stainless steel appliances, island, and pantry. The private primary suite features French door entry and an ensuite bathroom with dual sinks, updated shower, and spacious walk-in closet. Step outside to an entertainer's paradise featuring a covered patio, PebbleTec play pool with waterfall, flagstone decking, beautiful landscaping with artificial turf, built-in BBQ with ramada cover, and additional paver sitting area. Additional highlights include an owned security system, garage cabinets, and a workbench. Enjoy easy access to shopping, dining, and everyday essentials, with convenient Loop 101 access. Nearby parks and outdoor recreation add to the appeal of this established Glendale location. With thoughtful updates, inviting interiors, a resort-style backyard, the added benefit of leased solar, and location this home is a must-see!

5946 W Villa Theresa Drive, Glendale

7209 E Mcdonald Drive Unit 55, Scottsdale
$725,000
2 Beds ⋅ 2 Baths ⋅ 7100283 MLS ⋅ 1,690 SqFt.
Enjoy easy, low-maintenance Scottsdale living in this move-in-ready 2-bedroom, 2-bathroom end-unit townhome with a 2-car garage in the gated Las Villas community. Ideal as a full-time residence or seasonal retreat, this home combines spacious living with an incredibly convenient location close to everything Scottsdale has to offer. A private front courtyard welcomes you into an open great room with plenty of space for everyday living and entertaining. The kitchen features stainless steel Bosch appliances, granite countertops, custom cabinetry, a large island, and a functional layout that flows seamlessly into the main living areas. Both bedrooms are generously sized, including a spacious primary suite with a walk-in closet and direct access to the outdoor living space. Recent improvements include fresh interior paint, refreshed landscaping, and a new pavered backyard patio that creates an inviting setting for entertaining, dining, or simply enjoying the Arizona weather. As an end unit near guest parking, the home also offers added privacy and convenience. Las Villas is a beautifully maintained gated community featuring a heated pool and spa, all set among some of Scottsdale's most desirable neighborhoods and higher-end real estate. The location is hard to beat - just minutes from Old Town Scottsdale, Scottsdale Fashion Square, Talking Stick and Salt River Fields, the Scottsdale Greenbelt and canal paths, Camelback Mountain, golf, shopping, dining, entertainment, and countless recreational options. With so much nearby and very little maintenance required, this is Scottsdale lock-and-leave living at its best.

7209 E Mcdonald Drive Unit 55, Scottsdale

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