Property Division in a Vermont Divorce

When a couple divorces in Vermont, they must divide their marital property equitably. If they're not able to negotiate a property settlement, they'll have to ask the court to divide the marital property. The rule about equitable division doesn't mean the division must be equal. Instead, Vermont law starts with a presumption of equal division before adjusting for fairness based on a set of factors. Ultimately, the result must be a fair division that reflects the past efforts and future needs of both spouses.

Is Vermont a Community Property State?

No, Vermont isn't a community property state. The principle of "equitable distribution" controls property division in Vermont divorces, which means judges decide how to divide a couple's assets and debts based on what's fair under the circumstances of each case.

Fairness is the goal in equitable distribution states, rather than the equal 50-50 split that community property states strive for.

Marital Property and Separate Property

In a divorce, the distribution of property depends on which property belongs to the marriage (called "marital property") and which property belongs to each of the two spouses (called "separate property").

Generally, marital property is property acquired or earned during the marriage. Property used for the benefit of the marriage, even if it started out as separate property, may also be considered marital property.

Separate property includes anything that belonged only to one spouse before marriage and was kept separate throughout the marriage. It could also include property given only to one spouse during the marriage, like a gift from the husband's father to the husband alone or an inheritance upon the death of the wife's great aunt to the wife alone.

The most common types of property divided at divorce are real property like the family home, personal property like jewelry and clothing, and intangible property like income, dividends, and benefits. All of the marital property must be divided between the spouses when the marriage ends. In Vermont, the court may also include the separate property of one or both spouses if it makes the total division more equitable. Marital debts must also be divided.

Learn more about the differences between separate property and marital property.

Factors for Division of Property

To determine whether the presumption of equal division should be adjusted, the court evaluates a variety of factors, such as:

• the length of the marriage
• the age and health of the spouses
• the occupation and amount of income of each of the spouses
• the vocational skills and employability of each spouse
• the value of all property, debt, and needs of each spouse
• whether the divorce settlement will include spousal maintenance (alimony), and
• whether one spouse contributed to the education, training, or increasing earning power of the other.

(15 V.S.A. § 751 (2025).)

Can Couples Agree on How to Divide Their Property?

Throughout the process, the divorcing spouses will have opportunities to agree between themselves on what is a fair division. If they decide, for example, to sell the house and split the proceeds, let the wife keep her retirement benefits, and give the husband the vacation cabin, then they can submit a divorce agreement to the court. Usually, a court will accept this type of agreement without further involvement. On the other hand, if the spouses cannot work together, or if there are certain items of property that they cannot agree on, then the court will decide for them.

Spousal Maintenance Determined Separately

The court will consider whether either spouse should receive spousal maintenance (alimony) after the equitable division of property is complete. Spousal maintenance is a payment from one spouse to the other to help the recipient spouse maintain a lifestyle as close as possible to the marital standard of living. In addition, the court will look at the recipient spouse's financial resources, age, physical and emotional condition, whether education or training is needed before that spouse can find employment, and the ability of the obligated spouse (the one who pays the support) to make payments.

Getting Help With Property Division in Divorce

When couples want to reach an agreement about dividing their property and debts (or any other issues), divorce mediation might help.

Unfortunately, mediation doesn't always work, or it might be inappropriate (such as when you suspect that your spouse is hiding assets). In that case, you should strongly consider speaking with a lawyer. Among other things, an experienced family lawyer can help get all of the information you need about your spouse's finances, negotiate a settlement for you, and protect your interests in court if necessary.