Arizona couples who are going through a divorce may not realize that property division can be a very complicated process. Generally, property division laws in Arizona identify both the husband and wife as co-owners of anything purchased or earned during the marriage. This includes debt that was taken on during the marriage.
In the event of a divorce, a couple may quickly agree that one will keep the house purchased after they were married while the other will take the cars. It sounds simple, but there are a number of other things to consider when trying dividing a home.
One consideration is the mortgage. When is the best time to disassociate your name from the mortgage? Should you do that prior to the divorce, during the divorce process or after the divorce has been finalized? Are there any specific documents that the lender needs? At what point should a divorce decree be established? These are just a few of the questions that can arise.
How a couple divides property could also affect the process of buying a home after a divorce. If one spouse is still associated with a mortgage, and their former spouse is struggling to make on-time payments, it could impact his or her credit score.
Property division, especially a property such as a house, can be complicated. In order to ensure the best outcome, it’s important to that mortgage transactions are correctly processed. Carefully addressing every aspect of the division process will help make for a less complicated future.
Source: Fox Business, “How to Divide Your House in a Divorce,” July 14, 2014.