Arizona Dissolution With a House — Your Options (2026)

A home is often the largest community asset in an Arizona dissolution. Arizona's strict 50/50 community property rule means the equity must be divided equally — but HOW you divide it is flexible.

Is Your Home Community Property?

Yes, if purchased during the marriage — regardless of which spouse's name is on the mortgage or deed.

Separate property exceptions:

  • One spouse owned it before marriage and it was never refinanced with community funds
  • Purchased with inheritance or gift funds kept completely separate

If any community funds were used (mortgage payments from marital income, renovation costs paid jointly), there may be a community interest even in a property one spouse owned before marriage.

Three Options

Option 1 — One Spouse Keeps the Home

Consent Decree must include:

  • Clear award of the property to keeping spouse
  • Agreed value (appraisal, Zillow estimate, or negotiated value)
  • Equity buyout calculation: (Agreed value – mortgage balance) ÷ 2 = leaving spouse's buyout amount
  • Whether buyout is paid at closing or offset against other assets
  • Mandatory refinancing deadline — keeping spouse removes leaving spouse from the mortgage
  • Fallback if refinancing fails (sell the home)
  • Who pays all carrying costs (mortgage, taxes, insurance, HOA) pending transfer
  • Deed transfer: after refinancing, leaving spouse signs Quitclaim Deed → recorded at county Recorder

County Recorder recording fee: approximately $15–$30 per document.

Option 2 — Sell and Divide Proceeds

Consent Decree must include:

  • 50/50 net proceeds split (or agreed alternate split)
  • Listing deadline after Decree is entered
  • How listing agent is selected and listing price determined
  • Who lives in the home until sale; occupancy compensation
  • Who pays carrying costs during listing period
  • Price reduction trigger and timeline

Option 3 — Deferred Sale

One spouse (typically the custodial parent) lives in the home for a defined period.

Consent Decree must address:

  • Specific end date or triggering event (child graduates high school, remarriage)
  • Who pays all carrying costs; consequences of default
  • Occupancy charge to non-occupying spouse
  • Maintenance obligations (repairs above a threshold require joint decision)
  • How proceeds are divided at eventual sale

After the Decree: Recording the Deed

  1. Prepare a Quitclaim Deed (or Warranty Deed) transferring the leaving spouse's interest
  2. Leaving spouse signs before a notary
  3. Record at the county Recorder's office where the property is located
  4. Confirm recording fee with that county's Recorder (~$15–$30)

Arizona counties use Recorders — not Auditors or Register of Deeds.

Last reviewed: March 2026 | County Recorder for deed recording in Arizona | ARS §25-318 for community property division

Last reviewed: March 2026 · Verify current fees and forms with your local court before filing.