Divorce is one of the hardest transitions a person can face — and when there’s a home involved, the stress can multiply fast. A house is rarely just real estate. It’s often your largest financial asset, your biggest monthly expense, and the place most closely tied to your kids, your memories, and your sense of stability.
When a marriage ends, one of the first questions people ask is: Who gets the house?
But according to legal and lending experts, that’s actually the wrong place to start.
The real question is affordability.
Why Affordability Comes First
When one household becomes two, everything changes financially. Housing costs alone typically rise by 40% or more once spouses live separately — especially with today’s mortgage rates and rents.
Many people assume one spouse will simply keep the house and everything else will fall into place. In reality, that almost never works. Most people can’t afford the home on a single income, even if they desperately want to keep it for the kids.
Understanding your true numbers — income, expenses, debt, and credit — early in the divorce process is critical. Waiting too long often leads to rushed decisions, financial losses, and legal complications.
Arizona’s Community Property Rules
In Arizona, divorce follows community property law, which surprises many homeowners. In most cases, assets acquired during the marriage — including the home — are considered jointly owned, regardless of whose name is on the title.
Even if one spouse owned the home before the marriage, any equity gained during the marriage may still be divided. That’s why gathering financial documents early (mortgage statements, income records, bank accounts, retirement accounts, debts) can significantly speed up the process and clarify what’s actually at stake.
The Most Common Outcomes for the House
While every divorce is unique, most situations fall into one of these categories:
1. Selling the Home (Most Common)
About 95% of divorcing couples end up selling — not because they want to, but because it’s the only financially realistic option. The hardest part of selling is rarely the logistics. It’s the emotions.
2. One Spouse Keeps the Home
This typically requires refinancing the mortgage and buying out the other spouse. In many cases, it only works if a family member co-signs or pays off the loan entirely. Even then, higher interest rates can derail the plan.
3. Temporary Co-Ownership (Rarely Works)
Arrangements like keeping the house “for the kids,” delayed sales, or nesting (where parents rotate living in the home) almost always break down. These setups often lead to conflict, legal disputes, and costly evictions.
The Mortgage Reality No One Talks About
Your divorce decree doesn’t change your mortgage.
The bank only cares whose name is on the loan.
Lenders look at three things: income, credit, and debt — and divorce can disrupt all three at once. Refinancing may mean higher rates and higher payments. If refinancing isn’t possible, both spouses remain financially exposed.
Missed payments affect both credit reports, even if one spouse agreed to “handle it.” Debt exclusions are rare, documentation-heavy, and not guaranteed.
Avoid These Common (and Costly) Mistakes
- Assuming refinancing will be easy
- Making emotional decisions before the finances are settled
- Walking away just to “be done” and leaving money on the table
- Waiting too long to talk to professionals
- Relying on advice from friends, family, or social media
A Smarter Path Forward
The best outcomes happen when homeowners build a plan early and involve the right experts:
- A family law attorney
- A lender who understands divorce scenarios
- A real estate advisor experienced in family law transactions
Your home can either be a stabilizing force — or a major source of conflict. The difference is planning.
Before making any major decisions during a divorce, talk to professionals who can help you protect your finances, your credit, and your future.
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The post Ep 197 – What Happens to the House During a Divorce? What Every Arizona Homeowner Needs to Know first appeared on State 48 Homeowner.
