Protecting Separate Property in Vermont

Vermont is an all-property state—courts have jurisdiction over everything owned by either spouse, "however and whenever acquired." Under 15 V.S.A. § 751, title doesn't determine inclusion. But the source of property and your contributions do affect how it's divided. Whether you're navigating an uncontested or contested divorce, understanding Vermont's all-property approach is essential.

Vermont's All-Property Approach

Unlike dual-property states that exclude certain assets, Vermont puts everything in the "pot":

• All assets are divisible: Premarital property, gifts, and inheritances are all within the court's jurisdiction
• Title doesn't control: Property of "either or both" spouses is subject to equitable division
• Source matters for weighting: The "party through whom the property was acquired" is a key factor (§ 751(b)(10))
• No 50/50 presumption: Equal doesn't mean equitable—courts have broad discretion

The practical result: you can't exclude property, but you can argue for keeping it through the 12 statutory factors.

The 12 Statutory Factors

Courts must consider and explain their weighing of these factors under § 751(b):

• Length of marriage: Longer marriages tend toward more equal division
• Age and health: Physical and mental condition of each spouse
• Income and occupation: Current earnings and sources
• Vocational skills: Employability and future earning capacity
• Contributions to education: Support for the other spouse's training
• Property values and needs: Total assets, debts, and necessities
• Property vs. maintenance: Whether division substitutes for or complements support
• Future acquisition: Expectations of gifts, inheritance, or income
• Family home: Desirability of awarding the home to the custodial parent
• Source of funds: The party through whom property was acquired
• Contributions: Including homemaker contributions to preservation and appreciation
• Respective merits: Fault can be considered as an equitable factor

Gifts and Inheritances: Goodrich Doctrine

Under Goodrich v. Goodrich, inherited or gifted property often remains with the recipient:

• Source-of-funds factor: Courts weigh § 751(b)(10)—who brought the property into the marriage
• Contributions factor: Did the other spouse contribute to its growth or preservation?
• Not automatic: The court balances all factors; needs or long marriage may shift outcomes

Example: Wife inherits family-company stock during a 15-year marriage. Husband seeks half. Following Goodrich, the court may award stock to Wife while giving Husband a larger share of the marital home to balance—if she didn't commingle and he didn't contribute to the stock's growth.

Valuation Date: As Close to Trial as Possible

Vermont requires current values, not separation-date values:

• Trial-date valuation: Assets must be valued "as close to the date of trial as possible"
• Stale values are error: Using outdated valuations without explanation is reversible (Ward; Cleverly)
• Separation for pensions: The coverture fraction can use separation as the "functional end" for the numerator
• Post-separation adjustments: Credits and occupancy charges are handled through equitable adjustments

Estimate Your Vermont Divorce Costs

Property classification disputes in an all-property state can increase legal costs. Use our calculator to estimate your total expenses:

Post-Separation Credits and Occupancy

Vermont handles post-separation adjustments through equity, not rigid formulas:

• Payment credits: Spouse who paid mortgage/taxes/insurance may receive equitable credit
• Exclusive-use adjustment: Occupying spouse may owe offset for exclusive use of property
• Avoid double-counting: Credits are adjusted if already reflected in equity changes
• Whippie balancing: Courts net occupancy benefit against preservation payments

Protection Strategies

• Document the source: Keep records showing inheritances, gifts, and premarital ownership
• Avoid commingling: Don't mix inherited funds with joint accounts
• Minimize contributions: If your spouse doesn't contribute to the asset, document that
• Get current appraisals: Trial-date values are required—outdated valuations hurt your case
• Track post-separation payments: Document all mortgage, tax, and insurance payments
• Consider prenuptial agreements: Vermont enforces valid agreements for classification

Key Takeaways

• All-property state: Everything is divisible regardless of when or how acquired
• Source-of-funds factor: § 751(b)(10) protects inherited/gifted assets when properly documented
• Contributions matter: § 751(b)(11) weighs homemaker contributions and appreciation
• Trial-date valuation: Stale values are reversible error
• No 50/50 presumption: Equitable means fair, not equal
• Fault can be considered: "Respective merits" factor allows misconduct weighting

For the complete Vermont marital property guide and divorce timeline, see our detailed resources. For official forms and self-help resources, visit the Vermont Judiciary Divorce page.