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Homes purchased with a VA loan as part of the divorce process

The divorce process for a Tennessee couple that includes one or more spouses serving in the military is not much different from everyone else. But a military divorce can sometimes become complicated by factors that civilians seeking a divorce do not face. One issue to decide is what happens to a house purchased with a VA loan during the property division stage divorce.

Can a non-military divorcee take over a VA mortgage?

The main determinant for this issue is whether or not the non-military spouse’s name is on the original mortgage contract. A non-military spouse not listed or obligated through a mortgage contract will not have the option of taking over a mortgage.

Many military divorcees decide against allowing non-military ex-spouses to stay in a home the couple purchased through the VA loan program because the military spouse can only have one VA loan in their name at a time. If the military spouse decides on a new home purchase, they will need to complete the purchase without the benefit of a VA loan.

Both spouses may also find that becoming responsible for the mortgage on their own is more of an expense than they can afford. One solution to this problem for divorcing military couples is selling the home and dividing the money.


One party to a military divorce may be able to refinance a home to make mortgage payments more affordable. VA loan rules make it necessary for the parties listed on the original mortgage to apply for refinancing. A spouse unnamed on a mortgage and without their own VA benefits may find it difficult to refinance the mortgage.

Refinancing for buyouts

A military spouse may find the money necessary to buy out the non-military spouse and keep their home through refinancing. Individual lender standards and the terms of the original loans are among the many factors that will affect this mortgage refinance.

The divorce process for military couples can become complicated when a home purchased with a VA loan is part of the property division process. A family law attorney may be able to help facilitate this and other complex divorce issues.


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