When Should We Sell The Marital Home During An Arizona Divorce?

Some married couples put off divorce or even stick it out through their issues simply because they don’t want to lose the assets they have collected together throughout the years. There is no denying that selling a marital home due to divorce is a stressful ordeal, especially if the sale occurs before the divorce is finalized. But it can come with many benefits for the spouses, or be the only way to afford their separate lifestyles going forward. When is the best time to sell a home as it relates to the divorce process? Read on to learn more about the factors that could be relevant to your decision on this issue. Schedule your free time to speak with an Arizona family law lawyer today by calling 480-680-9126. 

Selling Before Divorce

Sometimes, the writing is on the wall months or even years before a spouse files a petition to initiate the divorce process. If both spouses are aware, they can take steps to prepare for divorce while they are still married. This eliminates legal barriers that could make selling a home more complicated when a divorce is pending or finalized. 

Selling During Divorce

Selling community property assets during divorce isn’t always simple, but it is sometimes necessary due to the funds the spouses have available. A divorce process begins when one spouse files a petition for dissolution of marriage in court- Arizona doesn’t give spouses the option to file a joint divorce petition. The spouse who files the petition is known throughout the case as the petitioner, while the other spouse is referred to as the respondent. Upon filing the petition, the petitioner becomes subject to the preliminary injunction, a legal mechanism meant to prevent spouses from selling or disposing of marital assets during divorce. The respondent becomes subject to the preliminary injunction once they are served with the divorce petition. There are only a few exceptions to the preliminary injunction rule against selling community property assets while a divorce is still pending. One is if selling possessions is necessary to pay for life necessities, such as living expenses, groceries, and utilities. Another is if selling assets is necessary to pay for reasonable attorney’s fees related to the divorce. Both spouses can agree in writing to the sale of a community property asset to bypass the preliminary injunction. Finally, the court can grant a spouse’s request for permission to sell an asset if none of the situations described above apply. 

Selling After Divorce

The spouses may be too busy and stressed during the process to sell their marital home, or might be required by their divorce orders to sell the home. At this point, there are no more arguments to be made over whether one spouse should get to keep the home- the judge has already made a decision. The orders might include a deadline by which the spouses must sell their home, or the spouses can agree to a date if they settle by consent decree. If no date is specified, the sale simply must be completed within a reasonable time frame. 

Q&A

How long does a divorce- and the restrictions from the preliminary injunction- last in Arizona?

There is no set time frame for a divorce in Arizona, but all divorcing spouses are bound to a 60-day waiting period after the petition has been filed. How much longer the divorce lasts depends on if the spouses can come to an agreement to settle their divorce, or if they must proceed to trial. Often, the most contested issue in a divorce is the sale of the marital home. Divorcing by trial can take several months or even years to complete. But if the spouses can finalize their issues during the waiting period, their divorce will be eligible for finalization, and the restrictions from the preliminary injunction can end. 

What are the pros of selling the marital home during divorce?

The proceeds from the sale of a marital home can be vital for two former spouses finding new housing and starting their lives over as unmarried individuals in general. Selling the home removes one issue to resolve during property division, which can help save time and attorney’s fees. It also allows the spouses to have one less shared issue when the divorce is finalized, allowing them to move on with fewer reasons to speak to their ex. But sometimes the biggest advantage of selling the home is simply that it saves money and allows the spouses to afford their new separate housing situations. 

What are the cons of selling the marital home during divorce?

Selling a home and going through a divorce are two costly experiences on their own. Spouses may have to pay capital gains tax on the proceeds from their home sale if the house has appreciated in value. There will be other expenses involved with selling a home, like staging, realtor costs, and inspections. Depending on the housing market in your area, it may not be the most strategic and profitable time to sell your home. 

How should we select a realtor during our divorce home sale?

A seasoned realtor will understand the complexities of selling a home for a married couple who is currently going through a divorce. It’s important to keep in mind that no matter the personal issues between the spouses, the ultimate goal is to sell the house as quickly and for as much as possible. If the realtor who helped you purchase the house is available, you may want to consider hiring them again for the sale. You may also want to give your realtor more authority during the process so it gives you less to argue about with your spouse, such as the asking price and which home improvements should be made before the sale. 

How will the proceeds of a home sale during divorce be divided?

The spouses can agree to divide the proceeds of a home sale any way they want through a settlement agreement. Otherwise, community property laws will be used to determine how much each spouse is entitled to. If the home was purchased during the marriage and paid for with funds earned during the marriage, it is a wholly community property asset that should be divided between the spouses equally. But if one spouse made separate property contributions to the purchase or upkeep of the home, they should be credited accordingly during property division. 

Prepare For All The Issues That Could Be Relevant In Your Divorce Case With Arizona’s Leading Choice For Family Law Representation

Your home may be just one of several assets you have acquired over the years with your spouse, meaning they’re on the table for property division during divorce. It’s important to have skilled legal counsel to represent your interests so you can focus on the personal and emotional aspects of your divorce. But hiring quality divorce representation doesn’t have to drain the funds you need to start your post-divorce lifestyle as a single individual. Our team offers competitive rates and risk-free consultations by phone. Get started today by contacting AZ Family Law Lawyers at 480-680-9126 for more information.