Minnesota Military Divorce: Handling Real Estate During Separation
Divorce can be a complex and emotional process for any individuals and/or families, but military families often face unique challenges, especially when it comes to dividing real estate. Whether it’s a home purchased with VA benefits, a property near a military installation, or a home tied to PCS relocation orders, military families navigating divorce in Minnesota must consider several factors.
This article explores the key aspects of handling real estate during a military divorce, offering insights to help service members, veterans, and their spouses make informed decisions during this difficult time.
Challenges in Dividing Real Estate in Military Divorces
Military Benefits and VA Loans: Homes purchased with VA loans come with specific requirements that can complicate property division. For example: VA loans are tied to the veteran borrower, meaning the non-veteran spouse may assume the loan if they qualify without refinancing.
If the home is sold, the proceeds must address any outstanding VA loan balance, and the veteran may need to restore their loan entitlement for future use.
PCS Orders and Mobility
Active-duty service members may face PCS orders that add an additional layer of urgency to decisions about selling or retaining the marital home. Timing becomes critical, especially if one spouse needs to relocate quickly.
State Laws vs. Federal Benefits: Minnesota is an equitable distribution state, meaning property is divided fairly, but not necessarily equally. Military benefits, including housing allowances or Basic Allowance for Housing (BAH), can influence decisions about alimony, child support, or property settlements.
Emotional Ties to the Home: For many military families, the home represents stability during deployments and frequent relocations. Dividing or selling the property can carry emotional weight, making the process more difficult for both parties.
Key Considerations for Military Families - Understanding Ownership and Benefits
Determine Ownership: Establish whether the property is considered marital or non-marital under Minnesota law. This distinction will impact how the home is divided. Your family law attorney can assist.
Evaluate VA Loan Impact: Work with a Certified Divorce Real Estate Expert (CDRE®) who is a Military Residential Specialist (MILRES) such as Shannon Lindstrom with RE/MAX Results to understand how dividing the property will affect VA loan entitlement.
Selling the Home
Selling the marital home is a common solution, allowing both parties to divide the proceeds and move forward. However, it’s important to consider:
Market conditions and timing.
Tax implications of selling, including capital gains exemptions.
Costs of preparing the home for sale.
Keeping the Home
If one spouse wishes to retain the home, they may need to buy out the other’s equity share. This may involve refinancing the mortgage to remove the other spouse’s name and ensure affordability on a single income.
Relocation Challenges
For the spouse relocating, finding new housing can be a challenge, especially for those relying on military housing allowances. Working with a Military Relocation Professional (MRP) can streamline this process.
How a Certified Divorce Real Estate Expert (CDRE®) Can Help
Military divorces require specialized knowledge to navigate the intersection of family law, federal benefits, and real estate. A Certified Divorce Real Estate Expert (CDRE®) can provide:
Neutral Guidance: Helping both parties make fair and informed decisions about the property.
Market Analysis: Offering insights into the home’s value and potential sale price.
Coordination: Managing timelines to align with PCS orders or court schedules.
Steps to Navigate Real Estate During a Military Divorce
Consult Professionals: Work with a team of experts, including a family law attorney, a CDRE®, and a financial advisor, to understand your options.
Review Benefits: Assess the impact on VA loans, BAH, and other military-related benefits.
Agree on a Plan: Decide whether to sell, divide, or retain the property based on financial and emotional considerations.
Communicate Clearly: Maintain open communication to minimize conflict and delays.
Moving Forward
Dividing real estate during a military divorce in Minnesota requires careful planning and expert guidance. By understanding the unique challenges military families face and seeking the right professional support, you can make informed decisions that set both parties on a path to stability and success.
If you are navigating a military divorce and need assistance with real estate decisions, reach out to Shannon Lindstrom, a Certified Divorce Real Estate Expert (CDRE), Military Residential Specialist (MILRES), Military Relocation Professional (MRP), and Veterans Certified Real Estate Agent (VCA). Shannon is dedicated to helping military families transition smoothly during life’s most challenging moments.
Shannon Lindstrom, Realtor®, CDRE®, CRS, GREEN, MILRES, MRP, VCA
RE/MAX Results
Direct: 612-616-9714
Lindstrom_S@msn.com
Shannon@ShannonLindstromRealtor.com
www.ShannonLindstromRealtor.com
www.ShannonLindstrom.info
www.MinnesotaMilitaryVeteranRealEstateAgent.com
www.MNDivorceRealEstateExpert.com
