The United States Department of Veterans Affairs guarantees home loans made to active service members, veterans and their eligible spouses. If you relied upon a VA loan to purchase a home during your marriage, you may need to consider some options to keep it after a divorce.
As noted by MilitaryBenefits.info, qualifying for VA home loan benefits requires a military member to reside in the property. A non-military spouse also has the right to live in the home, but divorce may require that the military spouse keep the mortgage.
Which military spouse may take over a mortgage?
When both you and your soon-to-be ex-spouse classify as military members, you may decide who takes your shared home. You may negotiate trading ownership of your house for other marital property. You may also need to consider refinancing the VA loan so that only one spouse has responsibility for the mortgage payments.
When may a non-military spouse take the property?
If a non-military spouse co-signed the original VA mortgage, he or she may keep a home after a divorce. A non-military spouse may, however, need to buy out the military member’s portion of the property. It may require assuming the mortgage or applying for a new home loan according to the terms the VA lender’s agreement allows.
How may a house sale affect a divorce?
Some couples choose to sell their marital home and divide the proceeds. Tennessee’s divorce laws require a fair division of income, property and assets acquired during a marriage.
The purpose of a VA home loan is to offer military members and veterans a way to obtain an affordable and stable residence. If you or your spouse wish to keep a formerly shared home after a divorce, your mortgage may require assuming the loan or refinancing it.