FAQs About Property Division in Divorce
Understanding How Real Estate and Home Equity Are Divided in Arizona
For many divorcing couples, the marital home is more than just a property — it’s a financial cornerstone and an emotional anchor.
Questions about who keeps the house, how equity is divided, and what happens if one spouse can’t refinance often become the most contentious parts of a divorce.
In Arizona, which follows community property law, the division of assets can be complex — especially when real estate is involved. Whether you’re a homeowner navigating this process or a Family Law attorney helping a client, understanding the fundamentals of property division is essential for reaching fair, efficient outcomes.
As a Certified Divorce Real Estate Expert (CDRE) serving the Phoenix and Scottsdale areas, I’m often asked the same critical questions about dividing real estate in divorce. Below, I’ll address those FAQs and share insights on how to avoid costly mistakes.
1. What Does “Community Property” Mean in Arizona?
Arizona is one of nine community property states, which means that any property or income acquired during the marriage belongs equally to both spouses, regardless of whose name is on the title or who earned more money.
However, separate property — assets owned before marriage, gifts, or inheritances — typically remain with the original owner, as long as they were not commingled.
When it comes to the marital home, community property rules mean that both spouses generally share equal ownership and equal responsibility for the mortgage, taxes, and maintenance, even if only one spouse’s name is on the deed.
2. Can One Spouse Keep the Home?
Yes, but certain conditions must be met. The spouse who wants to keep the home usually needs to refinance into their sole name, paying off the existing mortgage and buying out the other spouse’s equity interest.
Key steps include:
A professional valuation or appraisal to determine fair market value.
A refinance pre-approval to ensure the retaining spouse qualifies on their income alone.
A written agreement or court order outlining the buyout amount and timeline.
As a CDRE, I help both parties and their attorneys document the property’s value and equity position so that decisions are based on facts rather than assumptions.
3. How Is Equity Calculated in Divorce?
Equity equals the home’s current market value minus all debts secured by the property, such as mortgages or liens.
For example:
Home value: $800,000
Mortgage balance: $500,000
Equity: $300,000
Each spouse’s presumptive share: $150,000 (subject to any adjustments ordered by the court).
A Certified Divorce Real Estate Expert provides neutral valuations using comparable sales and market analytics, ensuring the equity figure is credible and defensible in court.
4. What If One Spouse Contributed More to the Home?
This is one of the most misunderstood areas of property division.
If one spouse made a larger down payment, paid for renovations, or used separate property funds, those contributions may be reimbursable — but only if they can be clearly documented.
Attorneys often rely on detailed records such as bank statements, receipts, or contractor invoices.
My role as a CDRE is to confirm and document the improvements, providing written reports that outline how those updates may have impacted the property’s current value.
5. What Happens If the Home’s Value Changes During Divorce?
Real estate markets move quickly — especially in Maricopa County.
If your case takes several months or longer, property values can rise or fall significantly before the divorce is finalized.
To avoid disputes, I often recommend obtaining updated market valuations throughout the process.
For attorneys, this ensures settlements reflect accurate, current data.
For homeowners, it prevents surprises at the closing table.
6. Can the Court Force the Sale of the Home?
Yes. If neither spouse can afford to buy out the other or if there is significant disagreement, the court may order the home to be sold and the net proceeds divided.
When this happens, the court may appoint a neutral Real Estate Special Commissioner—often a CDRE—to oversee the listing, marketing, and sale.
This ensures the property is handled fairly and that both sides receive equal access to updates and offers.
7. What Are Common Mistakes Couples Make?
Even the most amicable divorces can go off-track when it comes to real estate. Common mistakes include:
Using outdated online home value estimates instead of a professional valuation.
Agreeing to unrealistic buyout numbers without confirming refinance eligibility.
Neglecting to address post-closing logistics (e.g., moving timelines or possession terms).
Failing to account for deferred maintenance that impacts value.
A CDRE helps prevent these pitfalls by establishing a structured, transparent process for determining value and next steps.
8. What If the Home Has Negative Equity?
If the mortgage balance exceeds the home’s value, you may be facing a short sale or negotiation with the lender.
Both parties must typically agree to the terms, and legal coordination is crucial to determine how any deficiency balance or credit impact will be handled.
I work closely with attorneys and lenders to guide clients through these complex scenarios—ensuring compliance with court orders and minimizing long-term financial harm.
9. What About Investment or Vacation Properties?
Arizona’s community property laws apply to all marital assets, including second homes, rentals, or vacant land.
However, dividing investment properties often requires additional analysis, such as rental income records, depreciation schedules, or 1031 exchange considerations.
For high-asset cases, collaboration between the CDRE, CPA, and financial advisor ensures accurate valuations and equitable division while minimizing tax exposure.
10. How Can Attorneys Benefit from Partnering with a CDRE?
Family Law attorneys juggle complex emotional and financial issues. Partnering with a Certified Divorce Real Estate Expert saves time, reduces conflict, and strengthens your case.
A CDRE provides:
Neutral valuations and reports admissible in court.
Professional communication with both clients.
Court-compliant documentation and detailed transaction logs.
Expert testimony when real estate issues become contested.
Attorneys appreciate having a trusted real estate partner who understands both legal procedure and market dynamics.
11. How Can Homeowners Protect Their Financial Future?
Selling or dividing the marital home isn’t just about equity — it’s about stability.
Homeowners can protect themselves by:
Getting accurate valuations early to set realistic expectations.
Consulting financial professionals before finalizing agreements.
Planning post-divorce housing before the sale closes.
Keeping communication professional and documented.
A CDRE helps ensure the transaction supports each person’s next chapter, not just the immediate resolution.
12. How Long Does the Division Process Take?
Property division timelines depend on the court schedule, cooperation between spouses, and market conditions.
In Phoenix and Scottsdale, a typical home sale might close within 45–60 days once listed, but delays in agreement or court approval can extend the process.
When I’m involved as a neutral CDRE, I help set realistic expectations and keep both parties informed to minimize unnecessary delays.
Final Thoughts: Knowledge and Neutrality Protect Everyone
Dividing property during divorce is never just a financial transaction — it’s a major life transition.
Having clear information and neutral guidance can make all the difference between a prolonged battle and a smooth, equitable resolution.
For Family Law attorneys, working with a Certified Divorce Real Estate Expert means your clients receive accurate data, transparent communication, and court-compliant documentation.
For homeowners, it means peace of mind knowing every decision is backed by facts, not emotion.
📞 Let’s Connect
If you’re navigating property division in a divorce or representing a client who is, I can help bring clarity and fairness to the real estate side of the process.
Barbara Woyak | AZDivoreRealty.com
Certified Divorce Real Estate Expert (CDRE) • Phoenix | Scottsdale | Paradise Valley | Maricopa County
📧 barbara@azdivorcerealty.com 📞 480-818-5105