Dividing Home Equity in Divorce — What Arizona Couples Need to Know!
(by Niomee Baker, Divorce Certified Realtor in Chandler, AZ)
For many couples, the home is their biggest asset — and deciding how to divide that value can feel overwhelming.
In Arizona, property division follows the principle of community property. That means any equity built during the marriage is typically shared 50/50, regardless of who made more money or whose name is on the mortgage.
First, determine your equity:
Find your home’s current market value. (A comparative market analysis from a Realtor helps.)
Subtract the mortgage balance and any home equity loans.
What’s left is your equity — and it’s considered community property if the home was purchased during the marriage.
Common ways couples handle home equity in divorce:
Sell the home and split the proceeds.
→ This is often the cleanest option when both spouses want to move forward.
One spouse buys out the other.
→ The staying spouse refinances the mortgage and pays the other their share of equity.
Defer the sale.
→ Sometimes, especially when children are involved, the court may allow one spouse to remain in the home for a period before selling.
Keep in mind:
Refinancing or selling may have tax implications, especially with capital gains.
If one spouse owned the home before marriage, that portion of equity may be separate property, not split equally.
You’ll need a fair market valuation — not just an online estimate.
Expert tip: A Divorce Certified Realtor can help determine accurate market value, coordinate with attorneys, and ensure both sides understand the financial picture before decisions are made.