I may want to stay in my home—what do I need to consider?  Initially, take into account the size of the home, utilities, payments and reasonable family needs.  Does it make sense to stay in the home, as you will probably be solely responsible for mortgage payment, taxes, insurance, maintenance and repairs and other associated bills? As Arizona is a community property state, my spouse is entitled to share in the equity we have in our home, how is this handled?  Generally, equity in the home can be established by a comparative analysis, or by retaining an expert real estate appraiser to determine the fair market value.  The appraised value less than the cost of sale (commissions, closing costs) equals the net equity to be split between the spouses.  This is the amount you will be obligated to give your ex-spouse.  Sometimes, if you can document it, any contributions from your own premarital assets (sole and separate) may be accounted for in allocating the final amount of equity. If you decide to stay in the home, you have two financing options to pay your ex-spouse.  You can either refinance your home to get cash out or you can obtain a new mortgage to remove your ex-spouse from the original loan. What if I am the spouse leaving the home?  You should be aware that even though the divorce decree awarded the home to your spouse, you are still obligated for this debt in the eyes of the mortgage company.  The divorce decree awarding the home and the responsibility for payment of the mortgage to the other spouse is only valid between you and your spouse.  If your spouse does not make a mortgage payment, the mortgage company can proceed after you and your only recourse is to then bring an action in court against your spouse for contempt or failure to comply with the terms of the decree. If you simply file a Quit Claim Deed, this will only remove you from the title—it will not alleviate your financial responsibility of payment of the mortgage.  The only benefit to the spouse having you sign a Quite Claim Deed is that upon the spouse’s death, the property would pass to his heirs and then the ex-spouse. Can I purchase another home while I am still listed on my original mortgage?  It may difficult for you to purchase another home with a current mortgage, as you may not qualify. Although in most situations, if child support and spousal maintenance have been received for three months and is likely to continue for at least three years, this fact can be used for income qualifying purposes. Can I purchase another home before the divorce is final?  It is possible for you to purchase a home while the divorce is pending, however, the title company will require your spouse to sign a Quit Claim Deed waiving any interest in your newly purchased property.  This can be quite complicated and it is best if you speak with an attorney concentrating in family law matters. At Simon Law Group, we offer a free consultation to discuss all of your options.  If you have similar questions—or need to talk to a Scottsdale divorce attorney for any reason—we urge you to contact us at (480) 745-2450.]]>