“I Got the House in the Divorce!”

“I Got the House in the Divorce!”  Understanding Property Ownership After Divorce in Arizona

 Divorce can be emotionally and financially challenging, especially when real estate is involved. Many Arizona homeowners assume that if the court “awarded” them the home, they fully own it. Unfortunately, the truth can be more complicated. Whether you’re keeping your marital home or preparing to buy a new one, understanding how title, mortgage responsibility, and liens work after divorce is essential.

Below are answers to some of the most common real estate questions that come up during and after a divorce in Arizona.

“I got the house in the divorce!”

DID YOU? Your property settlement may have provided for you to retain your home, but do you actually have a vested title clear of your former spouse? Judges in divorce actions have the authority to grant title, but the wording in your divorce decree is critical in determining if you have actually received full title to the property.

If the Judge “granted” you title in your decree, you have legal title and your ex-spouse is no longer an owner. HOWEVER, if the decree says you are “awarded” the property, or that the Court rules in your favor that you shall have the property, you must still obtain a deed from your ex-spouse to divest his or her interest.

Too often, the prevailing spouse believes they have clear, vested title to the property when in fact, what they really have is the right to own solely. There must actually be a granting of the property in the public record, either by the court in the divorce decree or by the spouse on a deed.

Can I buy a home before my divorce is final?

YES! Arizona is a Community Property State, so generally when a married person desires to acquire real property in their name only, the spouse must sign a disclaimer deed waiving any interest the State grants under community property laws.

When people divorce, there often is not sufficient desire to cooperate and getting a disclaimer deed isn’t possible. Under Arizona Law, provided a divorce action has been properly filed and legal service of divorce papers can be documented, no disclaimer deed is required and the individual is free to acquire a title-insured, sole and separate interest.

HOWEVER, should the divorce not occur, the spouse would then acquire a community property interest.

My name is on the mortgage, but my ex-spouse got the house. Am I still responsible for the loan?

ABSOLUTELY! The lender made the loan in both names and is not obligated to release any of the responsible parties, whether the divestiture of the property is made willingly or forced by the court.

You may petition the lender to release you, but they are under no obligation to do so. If your ex-spouse defaults on the loan, you can be held responsible for any deficiency after a foreclosure. The divorce court can condition the granting of the property upon the grantee spouse trying to qualify with the lender to remove you from the loan, or state that the ex-spouse is responsible for the obligation, but the court is unlikely to force the lender to remove you from responsibility if they are unwilling to do so.

My ex-spouse is no longer on the title to my home. Why are his/her debts posted as liens against my property? Are they valid?

POSSIBLY. Many liens incurred by individuals can be assessed against any real estate they own. If your spouse had a judgment or tax lien levied against them during the time they were in title to the home, the obligation is potentially a lien on the property.

If the spouse’s interest was not properly conveyed in the public record (see above), their liens can attach to the property until it is.

Final Thoughts from RE/MAX Sun Properties

Divorce and real estate can be a tricky combination, and misunderstandings about title and ownership can create problems down the road—especially when it’s time to sell or refinance. Before making any property-related decisions during or after a divorce, be sure to consult with a qualified attorney or title professional.

At RE/MAX Sun Properties, our team is here to help you navigate the real estate side of life’s big transitions with expertise, care, and confidentiality. Whether you’re starting over, downsizing, or investing in your next chapter, we’re ready to help you move forward with confidence.

Source: Provided Maggie Clark, Sr. Business Development Manager with Equity Title Agency, as a courtesy only and not to be considered legal advice. Always obtain proper legal counsel when needed.