Vermont Marital Property Division Guide

Vermont follows equitable distribution for dividing property in divorce under 15 V.S.A. § 751. What makes Vermont's approach distinctive is its all-property doctrine—the court can divide "all property owned by either or both of the parties, however and whenever acquired." This means separate property, inherited assets, and premarital property are all subject to division. Whether you're pursuing an uncontested or contested divorce in Vermont, understanding this broad reach is essential for protecting your interests.

This guide explains Vermont's equitable distribution framework, the factors courts consider, the unique 90-day "nisi" waiting period, and strategies to navigate property division effectively.

Vermont's All-Property Approach

Unlike many states that distinguish sharply between marital and separate property, Vermont takes an all-property approach. Under 15 V.S.A. § 751, the court may divide:

• Property acquired during marriage: Regardless of whose name is on the title
• Premarital property: Assets either spouse brought into the marriage
• Inherited property: Even if received by only one spouse
• Gifts: Including gifts from third parties to one spouse
• Property held in either name: Or in both names jointly

This doesn't mean premarital or inherited property will automatically be divided equally—the court considers the source and nature of property as one of many factors. But nothing is automatically excluded from consideration.

The 11 Statutory Factors for Division

Vermont courts must consider 11 specific factors when dividing property under 15 V.S.A. § 751:

1. Length of the Marriage

Longer marriages typically result in more equal division. In short marriages, courts may be more inclined to return premarital property to its original owner.

2. Age and Health of the Parties

A spouse with health issues or limited remaining working years may receive a larger share to ensure financial security.

3. Occupation, Source and Amount of Income

Current employment, earning capacity, and income sources all affect the division. Self-employment income may require additional analysis.

4. Vocational Skills and Employability

The court considers each spouse's ability to support themselves, including education, training, and work history.

5. Contribution to Marital Property

This includes both financial contributions and nonmonetary contributions such as homemaking, childcare, and supporting a spouse's career.

6. Value of Separate Property

While all property is subject to division, the court considers how much property each spouse owns separately. A spouse with substantial separate assets may receive less of the marital pool.

7. Conduct During Marriage Affecting Value

Vermont courts can consider economic misconduct—dissipation of assets, hiding property, or waste—when dividing property. This is not the same as general marital fault but focuses on financial behavior.

8. Contribution to Education or Training

If one spouse supported the other through school or professional training, the court considers this contribution. This can significantly affect division when one spouse sacrificed career opportunities.

9. Custodial Provisions for Children

The custodial parent may receive assets that facilitate caring for children, such as the family home.

10. Social Security Benefits

The court considers each party's eligibility for Social Security benefits, which cannot be divided but affect overall financial security.

11. Retirement Benefits

Both public and private retirement benefits are subject to division. Courts regularly divide 401(k)s, pensions, and other retirement accounts.

Equitable Does Not Mean Equal

Vermont's equitable distribution means the court divides property fairly, not necessarily 50/50. While many divorces result in roughly equal splits, the court has broad discretion to award more or less based on the statutory factors. Common scenarios where unequal division occurs:

• Short marriages: Each spouse may leave with roughly what they brought
• Dissipation: A spouse who wasted assets may receive less
• Career sacrifice: A spouse who gave up career opportunities may receive more
• Health issues: A spouse unable to work may receive additional assets
• Significant separate property: May offset the marital division

The 90-Day Nisi Period

Vermont has a unique nisi period—a 90-day waiting period after the divorce judgment before it becomes final and absolute. During this time:

• The decree is "nisi" (not yet final)
• Neither party can remarry
• Either party can request modifications in limited circumstances
• The decree automatically becomes final after 90 days unless action is taken

This period exists to allow for reconsideration before the divorce becomes irrevocable. After 90 days, the decree becomes "absolute" and property transfers take full effect.

Property Transfers and Real Estate

Vermont law provides that a divorce decree can effectively transfer real estate without requiring a separate deed. Under 15 V.S.A. § 751, the court's order "may include an order for either or both parties to execute any deeds, assignments, or other documents as may be necessary to implement the decree."

Additionally, the statute allows the court order itself to operate as a conveyance:

• The order can be recorded in land records
• It operates to vest title as specified
• No additional deed may be required if the order is properly drafted
• Refinancing may still be needed to remove a spouse from a mortgage

Division of Retirement Benefits

Retirement benefits are explicitly listed as a factor in Vermont's property division statute. Key considerations:

Types of Retirement Accounts

• Defined contribution plans: 401(k)s, 403(b)s, IRAs—typically divided by percentage or fixed amount
• Defined benefit pensions: May require present-value calculation or deferred distribution
• Vermont State Employees Retirement: Has specific procedures for division
• Military retirement: Subject to federal rules (10/10 rule for direct payment)

QDROs in Vermont

A Qualified Domestic Relations Order (QDRO) is typically required to divide employer-sponsored retirement plans without tax penalties:

• Must be prepared separately from the divorce decree
• Must be approved by the plan administrator
• Should be prepared while divorce is pending (not after)
• Each plan typically requires its own QDRO

Dividing Business Interests

Vermont's agricultural heritage and small business economy mean many divorces involve business valuation. Courts consider:

• When the business was started: Before or during marriage
• Each spouse's contributions: Financial investment, labor, ideas
• Current fair market value: Often requires professional appraisal
• Goodwill: Both personal and enterprise goodwill may be considered
• Cash flow and liquidity: Ability to buy out a spouse's interest

Farms and agricultural operations require special attention given Vermont's rural economy. Land value, equipment, livestock, and production contracts all factor into valuation.

How Vermont Divides Debt

Debts are divided using the same equitable principles as assets. The court considers:

• When the debt was incurred: During or before the marriage
• Purpose of the debt: For marital expenses or individual benefit
• Which spouse incurred it: And whether the other knew or benefited
• Ability to pay: Each spouse's financial capacity

Important: A divorce decree assigning debt to one spouse doesn't release the other from creditor liability if both names are on the account. The creditor can still pursue either party.

The Family Home

The family residence often represents the largest marital asset. Vermont courts have several options:

• Award to one spouse: With offsetting assets or a buyout payment
• Order sale: Divide proceeds according to the decree
• Deferred sale: Allow custodial parent to remain until children reach a certain age
• Co-ownership: Rare, but possible in specific circumstances

When children are involved, courts often consider the benefit of stability—keeping children in the family home and school district.

Dissipation of Assets

Vermont courts take dissipation—the waste or hiding of marital assets—seriously. Examples include:

• Gambling away marital funds
• Spending on an extramarital affair
• Transferring assets to family members before divorce
• Destroying or selling property below market value
• Excessive spending once divorce is contemplated

If dissipation is proven, the court may credit the innocent spouse for the dissipated amount or adjust the division accordingly.

Estimate Your Vermont Divorce Costs

The complexity of property division significantly affects divorce costs. Vermont's filing fee is $295 for a divorce with minor children ($262 without). Use our calculator to estimate total expenses:

Mediation and Settlement

Vermont courts encourage mediated settlements for property division. Benefits include:

• Cost savings: Significantly less expensive than litigation
• Control: You and your spouse decide, not a judge
• Privacy: Settlement terms aren't public court records
• Speed: Often resolves faster than contested proceedings
• Flexibility: Creative solutions not available through litigation

Many Vermont family courts offer or require mediation before trial. Even if mediation doesn't resolve all issues, it often narrows the disputes.

Financial Disclosure Requirements

Vermont requires comprehensive financial disclosure through sworn financial affidavits. Both parties must disclose:

• All income sources and amounts
• All assets (real estate, accounts, vehicles, investments)
• All debts and liabilities
• Monthly expenses
• Tax returns (typically 3 years)

Failure to provide complete disclosure can result in sanctions, adverse inferences, or reopening of the judgment after discovery of hidden assets.

Practical Tips for Vermont Property Division

1. Document everything: Keep records of all assets, debts, and financial transactions
2. Understand the all-property rule: Nothing is automatically excluded from division
3. Get valuations early: For real estate, businesses, and complex assets
4. Address retirement accounts: Start QDRO preparation during the divorce, not after
5. Consider the nisi period: Plan for 90 days before the divorce becomes final
6. Protect against dissipation: Request temporary orders if you suspect waste
7. Complete financial affidavits honestly: Hidden assets can be discovered later
8. Consider mediation: Often faster, cheaper, and more satisfying than litigation
9. Factor in taxes: Some assets have hidden tax consequences
10. Don't forget creditors: Debt assignment doesn't release joint liability

Property Division in the Divorce Timeline

Vermont requires that parties live "separate and apart" for six months before filing for divorce on no-fault grounds. After filing, uncontested cases with complete agreements may finalize in 2-3 months (plus the 90-day nisi period). Contested cases involving complex property division can take 12-18 months or longer. For the complete Vermont divorce timeline and filing checklist, see our detailed guides.

Key Takeaways for Vermont Property Division

Understanding Vermont's property division rules helps you protect your interests:

• All-property state: Everything owned by either spouse is subject to division
• 11 statutory factors: Courts must consider all factors in 15 V.S.A. § 751
• Equitable, not equal: Fair division based on circumstances, not automatic 50/50
• 90-day nisi period: Divorce isn't final until 90 days after judgment
• Economic misconduct matters: Dissipation can affect your share
• Education contributions count: Supporting a spouse's education is valued
• Decree can transfer property: Court orders can operate like deeds
• QDROs required: For most employer retirement plan divisions

For official forms and court information, visit the Vermont Judiciary Family Division. Given Vermont's all-property approach and the complexity of equitable distribution, consulting with a Vermont family law attorney is recommended for divorces involving significant assets.