VA Home Loans & Your Divorce
One of the first and most important steps in the divorce process is decidingwhich spouse is going to keep the family home. This helps a divorcingcouple decide who is responsible for paying the mortgage during and afterthe divorce. However, if the home was purchased using a VA loan, thisprocess can get a little more complicated.
VA Home Loans
A veteran may be eligible for a loan if they served their required termor were honorably discharged. This loan can be used to purchase a homeand help a burgeoning family start the next chapter of their lives. Theveteran’s spouse can share and enjoy their partner’s benefitsfor the duration of their marriage. However, once the divorce is finalized,these benefits are stripped away entirely.
Veterans can only receive one VA loan at a time, so they rarely want toleave the family home to their ex-spouse. It’s important that whicheverspouse receives the family home is able to afford it. If a single ownercan’t pay the full mortgage on their own, they may need to refinancethe house to secure a longer mortgage or lower the interest rate to makethe monthly payments more affordable. Usually, this option is only applicableif the veteran keeps the home or is willing to let their spouse have itfor the sake of their children.
Couples who want to make a clean break can just sell the shared propertyand divide the equity fairly. This allows the veteran to request a differentVA loan to purchase a new housing opportunity.
Explore Your Options Today
Divorce is rarely a simple process, and splitting assets and debts is usuallyone of the most difficult aspects of the process. If you’re concernedabout how your debts or VA loans may impact your divorce settlement, contact theIllinois divorce attorneys at Wakenight & Associates, P.C. Our experienced legal team can helpyou negotiate a fair settlement that benefits you and your children.
Call Wakenight & Associates, P.C.to schedule a free consultation. We have offices conveniently located inJoliet, Oak Park, and Mokena.