When a marriage ends, the financial situation can become very complex and confusing. Divorce will bring about some major financial decisions. For most Arizona residents, the biggest financial decision during this time will most likely be what to do with the house. In many divorces, one spouse will be more inclined to keep the home but both spouses have the right to pursue ownership. The following advice could be helpful for individuals who find themselves in this situation.
To get the house, it is often necessary to buy out the other spouse's stake in the home. A spouse may not agree to sell until it is proved that the other spouse can afford it. For starters, find the value of the purchase cost. To do this, subtract what is owed from the house's agreed-upon value, then divide it in half to come up with each spouse's share.
Once a purchase cost is obtained, the next step is to come up with the money. It may be possible to do this without borrowing money. In some divorces, one spouse may give the other spouse their share in a marital asset, such as the money in a retirement account. This can also be tangible assets like a car or jewelry. If this is not an option, consider adding a home equity line of credit or refinancing with a bank.
Unfortunately, if none of these options works, it may be necessary to just let the home go. There is no shame at all in this. Obtaining the home can sometimes mean another financial burden in an already difficult situation. Divorce can definitely be confusing. Those in Arizona who have questions regarding any aspect of divorce may want to consider discussions with a legal representative